BTL lenders cut rates and boost borrowing limits as competition heats up

It’s been a week of growing competition across the buy to let mortgage market as several major lenders roll out rate cuts and higher borrowing limits to help landlords.

The Mortgage Works (TMW) has lifted its maximum loan per property to £2 million for both standard BTL and limited company applications, up from £1.5 million.

Let-to-buy customers can now borrow up to £1 million, doubling the previous limit, while overall borrowing rises to £7.5 million.

As part of its affordability checks, TMW will now apply different Interest Cover Ratio (ICR) thresholds depending on property ownership structure.

Properties held in limited companies will be assessed at 125% ICR, while personally owned properties remain at 145%.

The 4.75% stress rate and 75% maximum aggregate loan-to-value stay unchanged.

Its head of buy to let mortgages, Dan Clinton, said: “As one of the country’s largest buy to let providers, it’s important we support landlords across their entire portfolio, and these enhancements will enable us to do just that.”

Molo’s BTL rate drop

Meanwhile, digital lender Molo has reduced rates on its standard buy to let products by up to 14 basis points.

Two-year fixes now start from 2.54%, while five-year options begin at 4.34%, available to both individuals and limited companies.

Specialist products for HMOs, MUFBs, new builds and holiday lets remain unchanged from 2.75%.

Molo’s distribution director, Martin Sims, said: “By reducing our rates, we are giving intermediaries stronger options and greater flexibility to support their clients – from first-time investors to seasoned portfolio landlords.”

Paragon cuts BTL rates

Paragon Bank has also moved to cut rates, trimming its single self-contained property range by 15 basis points and introducing new fee options.

Two-year fixed products now start from 3.14% for properties with EPC ratings of A-C, while five-year deals open at 4.14%.

The lender has also added five-year fixed-rate products with a 1.5% fee, starting at 4.90%, available up to 75% LTV across SSC, HMO and MUB property types.

Paragon’s product manager, James Harrison, said: “Reducing rates across our whole range of mortgages for SSC properties provides more options for landlords who are still very much active in the market.

“Additionally, our market analysis has identified the popularity of lower fee products, so we are offering greater choice to assist brokers in matching the right product for each application by adding this additional 1.5% fee option to our five-year fixed range.”

Together, Accord and NatWest join the fray

Manchester-based Together has followed suit, trimming selected rates by up to 20 basis points across its buy to let, consumer BTL, commercial term and second charge ranges.

Its two-year fixed rate for first charge BTL customers drops from 8.15% to 8.05%, while the five-year version now sits at 7.39%.

Tanya Elmaz, the lender’s managing director of intermediary sales, said: “These rate reductions are excellent news for both brokers and their customers.

“By lowering monthly payments and enhancing affordability, we’re helping more people access the finance they need to achieve their property ambitions.”

Accord Mortgages has also announced fresh reductions, cutting its buy to let rates by up to 0.23%.

The changes include a five-year fix at 4.88% up to 80% LTV, a two-year remortgage deal at 4.18% up to 75% LTV, and a two-year fix for purchases at 3.90% up to 60% LTV.

Aidan Smith, Accord’s product manager, said: “We’re so pleased to be able to make further positive changes to both our buy to let ranges, passing on even better value to brokers and their clients.”

Finally, NatWest‘s latest two-year fixed BTL product at 60% LTV has been recognised by Moneyfactscompare.co.uk as an Outstanding Product.

The 3.98% rate, which dropped by 0.14%, is available until 31 January 2028 and includes a £995 fee and free valuation.

Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, said: “Landlords looking for a competitive rate may find this appealing, as it also includes a reasonable £995 product fee and a free valuation incentive.”

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