Buy to let lenders widen landlords’ finance options

Landlords arranging larger loans, borrowing for improvement work or buying through a limited company have new buy to let products and revised finance routes to consider.

Buckinghamshire Building Society, Paragon Bank and ModaMortgages have each announced changes to their landlord ranges, while Moneyfactscompare.co.uk has selected a reduced-rate Leeds Building Society five-year fix in its latest Pick of the Week.

Buckinghamshire BS has lifted its maximum loan amount across its BTL and holiday let ranges from £500,000 to £750,000.

The society has also reopened selected fixed-rate products and launched new limited company special purpose vehicle products, including a three-year buy to let fix at 6.19% up to 80% loan-to-value.

Expat BTL deal

Its new expat BTL three-year fix is priced at 6.29% up to 80% LTV, while its holiday let two-year fix starts at 6.09% up to 75% LTV.

An expat holiday let two-year fix is available at 6.19% up to 75% LTV.

Each of the four products carries a £1,500 fee.

The society’s head of mortgage sales, Claire Askham, said: “We’ve seen continued appetite from landlords and expat investors who are looking for greater flexibility, larger loan sizes and products that reflect how the market is evolving.”

Paragon cuts further advance rates

Paragon Bank has reduced the minimum loan size on its buy to let further advance range to £2,000 and cut product rates by 20 basis points.

The bank is also adding advance applications onto its mortgage originations platform following broker feedback.

Where a property inspection is not required, Paragon said it can issue offers in as little as 48 hours.

Funds can then be released within 24 hours of the lender receiving a signed offer acceptance.

Paragon’s further advance business

Automated valuation models and other data sources will be used to reduce the need for in-person revaluations.

Paragon will also provide an indication of available additional borrowing in most cases, with applications assessed by underwriters where that is not possible.

Its five-year fixed further advance mortgages now start at 6.25%, available up to 75% LTV for single self-contained properties. Two-year fixes begin at 6.40%.

Equivalent products for houses in multiple occupation and multi-unit blocks are priced 20 basis points above the single self-contained property loans.

The lender’s head of mortgages transformation, Andrew Smart, said: “A substantial proportion of the further advance business we write supports home providers to improve their properties.

“Making this finance quicker and easier to access will be particularly beneficial for those investing to remain compliant with new regulations.”

Leeds’ five-year fix reduced to 4.67%

Moneyfactscompare.co.uk has named a Leeds Building Society’s five-year fixed rate buy to let mortgage as its latest Pick of the Week after a 0.22% rate reduction.

The product is fixed at 4.67% until 31 August 2031 and is available up to 60% LTV for second-time buyers and remortgage customers.

It carries a £1,499 product fee, with a free valuation available to all borrowers.

Remortgage customers can also receive help towards costs, and the deal allows overpayments.

The platform’s personal finance analyst, Caitlyn Eastell, said: “While landlords may note the £1,499 fee, this is partly offset by its incentive package which includes a free valuation for all borrowers, while remortgage customers will also receive help towards costs.”

ModaMortgages adds limited edition fixes

ModaMortgages has launched limited edition five-year fixed rate buy to let products for individual and limited company landlords.

Rates for single dwelling properties start at 5.14%, with products for HMOs and multi-unit freehold blocks of up to six bedrooms or units starting from 5.24%.

Borrowers can choose products at 75% or 80% LTV, with a selection of fee options.

Roger Morris, the group distribution director at Chetwood Bank, said: “With options up to 80% LTV and free valuations across the range, they make it easier for landlords to secure long-term stability with confidence.”

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