BTL lenders unveil new products, criteria and processing upgrades

A trio of buy to let (BTL) lenders has moved to strengthen options for landlords with Darlington Building Society, Shawbrook and Pepper Money each launching enhancements.

Darlington Building Society has entered the limited company buy to let space with two fixed rates.

It has rolled out a two-year fix at 5.29% and a five-year alternative at 5.39%, both up to 75% LTV.

Each comes with a £999 fee and a valuation charge.

Limited company BTL

The products are available through intermediaries and open to first-time buyers and first-time landlords.

There is no minimum ownership period for any borrower type, including those remortgaging.

The range extends to holiday lets, giving investors room to diversify into areas where short-stay income continues to perform strongly.

Darlington’s head of intermediary distribution, Chris Blewitt, said: “Limited company buy to let has evolved from a niche option to a mainstream choice for landlords at every stage.

“For those just starting out, it provides a professional framework to begin building a portfolio while keeping personal and property finances clearly separated.

“For seasoned investors, it can offer more efficient tax treatment, easier management of multiple properties, and the flexibility to reinvest profits within the company structure.”

Shawbrook sees HMO applications grow

Shawbrook’s latest data shows landlords are increasingly moving towards higher-yielding segments, particularly semi-commercial and HMO property.

Applications for semi-commercial purchases rose 58% in the first half of the year compared with the same period in 2024, while new purchase applications across its wider book increased 32%.

The steady rise signals confidence among professional landlords even as economic pressures persist.

Retail space above flats remains the most popular semi-commercial asset, chosen by 69% of landlords using Shawbrook in the first half of 2025, up from 60% a year earlier.

Many of these units offer a route to future gains through permitted development rights, which allow additional residential units to be created.

HMOs also continue to attract investors, accounting for 26% of Shawbrook’s buy to let business, up slightly from 25% last year.

The lender’s director of real estate proposition, Daryl Norkett, said: “While interest rates are more stable, they still remain high; and landlords continue to face a plethora of economic challenges.

“Despite this, they have once again proven themselves to be agile and adaptable and are turning to property types which offer higher yields compared to traditional single lets.”

Pepper targets buying delays

Pepper Money has revealed that it is targeting the delays and bottlenecks that continue to frustrate brokers and borrowers.

The lender has extended its mortgage offer validity from 90 to 120 days across its buy to let and limited company ranges.

It’s also introducing Docusign for offer acceptances to speed up completion times.

The decision comes as property buying chains lengthen across the UK.

According to Zoopla, transactions can now take up to five months from offer to completion, so lenders are under pressure to remove friction wherever possible.

Pepper’s shift to digital signing replaces password-protected PDFs with a secure platform that provides clearer tracking and faster turnaround.

The lender says the improvements will support brokers handling clients in complex chains, including those in shared ownership who often experience the most uncertain timelines.

The lender’s sales director, Paul Adams, said: “Brokers consistently highlight industry-wide hurdles, slow processes and uncertainty facing their customers, so these enhancements are a direct response to that.

“Moving offer validity to 120 days provides much-needed breathing space for customers, particularly where chains are moving slowly, and reduces the administrative burden of repeated extension requests.”

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