A wave of rate cuts by key UK lenders is breathing new life into the buy-to-let market, offering landlords more affordable options amidst a shifting economic landscape. Paragon Bank, Landbay, Shawbrook, and Coventry for Intermediaries are among those leading the charge with changes to their product ranges.
Paragon Bank has expanded its BTL Bank Base Rate tracker range, introducing new two-year options. A 2% fee product is available up to 75% Loan-to-Value (LTV), with a two-year tracker starting at Bank Base Rate plus 1% (currently 4.75%). This product comes with free mortgage valuation and no early repayment charges for single self-contained properties at 75% LTV.
Landbay has implemented rate cuts of 5 basis points across 18 of its Premier five-year fixed-rate products, available up to 75% LTV for both individual and limited company landlords. Examples include a zero-fee option at 5.4% and a 5% fee option at 4.4%.
Shawbrook has enhanced its commercial bridging loan offering by increasing the maximum LTV to 75% for eligible loans, supporting brokers whose clients require higher levels of funding for buying or refurbishing commercial properties.
Coventry for Intermediaries has cut selected rates across its buy-to-let and limited company products. For instance, its Limited Company BTL EPC five-year fixed rate to 31 December 2031 at 75% LTV with no fee now stands at 5.29%, following an 11 basis point reduction.
These changes reflect a dynamic period in the mortgage market as lenders adapt to economic conditions and borrower demand. They could offer a welcome relief for landlords, who have faced rising mortgage costs in recent years. The availability of more competitive mortgage products may help stabilise rental yields and influence the supply of rental properties.