BTL mortgage market sees boost from HSBC, TML and Aldermore

Three major buy to let lenders have unveiled measures aimed at strengthening support for landlords, offering improved borrowing options, rate cuts and cashback deals across the BTL sector.

HSBC has expanded its BTL range with the introduction of ‘top slicing’, enabling borrowers to use their personal income alongside rental income when applying for loans.

The move broadens affordability, particularly for properties in areas with lower rental yields.

Traditionally, mortgage affordability assessments rely solely on rental income, limiting how much can be borrowed.

Under this approach, landlords can now bridge shortfalls in their interest coverage ratio using surplus personal income.

HSBC unveils ‘top slicing’

Oli O’Donoghue, the head of mortgages at HSBC, said: “The introduction of top slicing into our BTL mortgage range is a key example, designed to make buy to let mortgages more accessible, while ensuring affordability remains at our core.

“Many landlords, particularly in London and the South East, have strong earnings but are limited by yield-driven constraints.”

He added: “By increasing the amount that can be borrowed through top slicing, we’re enabling more landlords to achieve their property investment ambitions due to providing greater borrowing capacity.”

TML cuts BTL rates

Meanwhile, The Mortgage Lender (TML) has cut its buy to let rates and launched a cashback incentive.

Reductions of up to 0.15% have been applied to its two- and five-year standard products, alongside the reintroduction of the two-year £2,495 fee option to give more flexibility over initial costs.

For portfolio and HMO landlords, a £500 cashback is now available on all five-year fixed HMO products for a limited period.

TML’s commercial director for retail mortgages, Steve Griffiths, said: “Landlords continue to adapt to a changing market, and we’re focused on making sure our range evolves with them.

“By reducing rates and enhancing incentives, we’re giving brokers more tools to support clients who are refinancing or looking to expand their portfolios.”

Aldermore unveils limited editions

Aldermore has also entered the fray with a set of limited-edition products across its buy to let range.

The offers include a five-year fixed, zero-fee mortgage at 5.34% up to 75% LTV for single residential properties, and a 5.29% equivalent for multi-property portfolios.

For HMO and multi-unit freehold landlords, a five-year fixed option at 4.64% with a 5% fee and free valuation has been introduced.

The lender’s director of mortgages, Jon Cooper, said: “We’ve acted quickly to launch these limited-edition products, giving brokers and customers fresh options at competitive rates.

“These launches reflect our commitment to staying responsive and backing more people to go for it, even in a challenging market.”

For assistance with any type of buy to let (BTL), property or commercial finance please complete the contact form below: