BTL lenders step up rate cuts and incentives as competition intensifies

More buy to let lenders are lowering their rates and offers as competition heats up.

This week, LendInvest Mortgages has revealed it has completed a £17.3m bridging facility to fund the bulk purchase of 50 residential homes across Hampshire and Dorset.

It says this transaction underlines renewed appetite for complex portfolio transactions.

The funding supported an experienced investor buying the properties from a developer at a discounted price.

Portfolio bridge at 90% of purchase

The homes are spread across four towns in the south of England, with the loan structured at 90% of the purchase price to meet tight completion deadlines.

LendInvest’s portfolio bridge was tailored to handle a multi-asset acquisition while keeping future funding options open.

Twenty of the homes are expected to be refinanced onto the lender’s buy to let products within 90 days, creating a clear bridge-to-let pathway.

Michael Minnie, LendInvest’s head of bridging sales, said: “When used strategically, as in this case, this type of flexible and certain funding can empower property investors to seize high-value opportunities.”

Pepper money lowers BTL rates

Pepper Money has enhanced its buy to let range, cutting rates by as much as 0.35% and introducing free valuations on selected products.

The lender confirmed that free valuations will now apply to Pepper48 and Pepper36 buy-to-let options, covering both individual and limited company borrowers.

The move reduces upfront costs at application and is designed to help brokers position value-led solutions as landlords weigh pricing, yield and portfolio decisions against a backdrop of further regulatory change.

Moneyfacts highlights Leeds BS

Competitive pricing has also been highlighted in the latest Pick of the Week from Moneyfactscompare.co.uk.

It has selected a two-year fixed buy to let mortgage from Leeds Building Society.

The deal, available at 60% loan-to-value for purchases and remortgages, is priced at 4.83% until 30 April 2028 and carries a £1,499 fee.

Caitlyn Eastell, a personal finance analyst at Moneyfactscompare.co.uk, said: “Leeds BS has reduced a handful of its two-year fixed rates this week, alongside extending end dates.

“Landlords may wish to note that there is a £1,499 product fee but this is partly offset by its free valuation for all borrowers and by its help towards costs for remortgage customers only.”

YBS adds new BTL products

More landlord choice has emerged from YBS Commercial Mortgages, which has added new two-year fixed rates to its BTL range while trimming pricing on five-year products by 0.10%.

The new two-year fixes are available on loans from £500,000 to £20m, with options at 65% LTV priced at 3.20% with a 5% fee and at 75% LTV priced at 4.10% with a 2% fee.

Five-year reductions span buy-to-let, HMOs, holiday lets and semi-commercial assets, with rates now starting from 4.65% at 75% LTV for standard buy to let borrowing.

YBS’ commercial managing director, Angela Norman, said: “This addition broadens our offering, providing greater choice for investors who prefer a shorter-term fix and supporting those who value the ability to adapt their financing strategies in line with interest rate fluctuations.”

CHL unveils limited-edition range

Specialist lender CHL Mortgages has also refreshed its proposition, launching a limited-edition range of free valuation products for HMOs and MUFBs.

The 10-strong collection supports properties with up to six bedrooms or units, offering two-year fixes from 2.44% and five-year fixes from 4.54%, up to 75% LTV with multiple fee structures.

Alongside the launch, CHL has cut rates by 5bps across its standard buy to let range, with two-year fixes now starting from 2.19% and five-year options from 4.41%.

Darrell Walker, Chetwood Bank’s group sales director for CHL Mortgages, said: “The free valuation products, combined with the 5bps rate reduction across our standard buy to let ranges, means we can offer brokers even greater choice and more ways to support their buy to let clients in 2026.”

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