Four major UK lenders have slashed their mortgage rates for buy-to-let (BTL) investors, offering potential savings of up to 30 basis points. Molo has taken the lead with significant cuts to its standard and specialist BTL products, while The Mortgage Lender, Landbay, and Fleet Mortgages have also reduced their rates in a bid to attract landlords.
Molo's most substantial headline cuts see two-year fixed rates for standard UK resident BTL mortgages starting from 2.95% at 75% loan-to-value (LTV), while five-year fixes are available from 4.65%. The specialist range, catering for portfolio landlords and investor-led applications, has seen reductions of up to 15 basis points. A new two-year fixed semi-commercial mortgage at 5.65% at 75% LTV has also been launched, with five-year semi-commercial rates cut by up to 30 basis points to 6.25%.
The Mortgage Lender (TML) has introduced limited-edition BTL products, including two-year fixed rates from 3.79%. TML has concurrently reduced its wider fixed-rate range by up to 0.15 percentage points, supporting landlords with mortgages for Houses in Multiple Occupation (HMOs) and multiple loans.
Landbay has cut its BTL rates by up to 20 basis points across both Core and Specialist mortgage ranges. For instance, five-year fixed Core mortgages at 75% LTV have been reduced to start from 4.74%, while two-year fixed Core rates now begin from 3.99%. Fleet Mortgages has also reduced rates on various two-year and five-year fixed products at 75% LTV, including those for HMOs and Multi-Unit Freehold Blocks (MUFBs), with some rates falling by 20 basis points.
The rate reductions coincide with a continued surge in demand for BTL mortgages, particularly from experienced portfolio landlords. According to Martin Sims, Molo's distribution director, there is 'continued strength in landlord demand' as investors seek to remortgage, restructure, and diversify their income streams, with semi-commercial properties gaining traction.
The competitive landscape among lenders suggests a strategic move to capture market share and support various landlord scenarios, from straightforward BTL cases to more complex specialist borrowing needs.