9:45 AM, 3rd July 2025, About A week ago
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The buy to let mortgage sector is experiencing a wave of competitive rate reductions and simplified application processes, as lenders respond to growing demand from landlords.
Several major financial institutions have announced significant updates to their offerings, aiming to attract both new and existing customers with attractive rates and enhanced services.
The Mortgage Works (TMW) has slashed rates across its BTL range by up to 0.35 percentage points, with new business and switcher products starting from 2.79%.
For new customers, a two-year fixed remortgage at 2.99% with a 3% fee, up to 65% loan-to-value (LTV), includes free valuation and legal services.
A five-year fixed remortgage at 3.82% with a 3% fee, up to 75% LTV, also offers these incentives.
Limited company BTL products have seen a five-year fixed rate drop to 4.67% with a 3% fee, while HMO two-year fixed rates now stand at 5.49% with a £1,495 fee.
For switchers, TMW offers a two-year fixed rate at 2.99% with a 3% fee or 4.12% with a £1,495 fee, both at 65% LTV, alongside a limited company two-year fixed rate at 4.14% with a 3% fee.
TMW’s senior manager, Joe Avarne, said: “These latest reductions make us one of the most competitive providers of buy to let mortgages in the sector.”
Paragon Bank has introduced a streamlined application process for landlords with up to 15 properties, reducing the need for extensive documentation.
By leveraging its new mortgage origination platform, Paragon pre-populates application data, requiring only a valuation and, for portfolios exceeding three properties, a property schedule.
The system integrates with Companies House, Experian and Hometrack, storing documents securely for future efficiency.
This process eliminates the need for payslips, tax returns or rental bank statements for most applicants.
Louisa Sedgwick, the managing director of mortgages at Paragon, said: “Landlords with smaller portfolios and simpler buy to let propositions require a more straightforward application and underwriting approach, so that is why we have streamlined and simplified the journey for landlords with 15 properties or under on single self-contained properties.”
Paragon has also launched limited edition two-year fixed-rate BTL products, with rates starting at 3.45% for single self-contained (SSC) properties rated EPC A-C, featuring a 4.00% product fee, no application fee, £500 cashback, and free valuations.
For HMOs and multi-unit blocks, rates start at 3.80%, stressed at 5.80%.
Shawbrook has responded to a 14% rise in landlords investing in multi-unit freehold blocks (MUFBs) by enhancing its lending criteria for serviced accommodation.
Loans are based on market rent under assured shorthold tenancy, with up to 75% LTV available.
Portfolios with more than 10 units require either two years’ accounts or a cashflow forecast.
Daryl Norkett, the lender’s director real estate proposition, said: “Our enhanced criteria for serviced accommodation lending reflect our dedication to support landlords as they adapt to market trends and explore new income streams, helping them unlock greater potential and long-term success in the rental market.”
NatWest and Principality Building Society have also updated their BTL offerings to earn the best BTL deals of the week accolade from Moneyfactscompare.co.uk.
NatWest’s two-year fixed rate at 60% LTV, priced at 4.11% with a £995 fee, includes a free valuation and has earned an Excellent Moneyfacts rating.
Principality’s five-year fixed rate at 60% LTV, now at 4.13% with a £1,395 fee, offers free valuation and an Outstanding Moneyfacts rating.
The platform’s Caitlyn Eastell said: “NatWest has refreshed its buy to let range with reductions across most of its products.
“The two-year deal at 60% loan-to-value for house purchase customers has been cut by 0.06% and is now priced at 4.11% until 30 September 2027.”
She added: “Principality Building Society has made several changes to its buy to let range including end date extensions and rate cuts.
“The five-year option at 60% loan-to-value has seen a 0.12% cut and is now priced at 4.13% until 31 October 2030.”
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