Borrow more for less: lenders relax rules for buy-to-let landlords

Relaxing mortgage rules and falling interest rates are giving portfolio landlords a boost, as lenders battle for their custom.

As the number of smaller and accidental landlords declines due to the government’s withdrawal of tax breaks and the proposed withdrawal of no-fault evictions, lenders are increasingly focused on attracting portfolio landlords onto their books.

Landlords could borrow 50% more

BM Solutions, part of the Lloyds Banking Group and one the country’s two largest buy-to-let providers, has relaxed its lending rules to offer greater choice and flexibility for landlords. An increase of the maximum loan value from £2m to £3m means landlords could borrow up to 50% more, and although the portfolio limit remains unchanged at ten properties, landlords can now hold a maximum of five buy-to-let mortgages with the lender.

Phil Rickards, head of BM Solutions, said: “With improvements delivered to our portfolio underwriting proposition, now is the right time for us to take our next step to bolster the BTL market.”

Falling buy-to-let rates

According to the latest industry tracker report from Property Master, the majority of fixed-rate buy-to-let mortgage rates are continuing to fall, particularly for those with a lower loan to value (LTV). The report tracks the cost of mortgages from 18 of the largest buy-to-let lenders. It found that the monthly cost of a five-year fixed-rate mortgage with a 50% LTV fell by £13 and rates for a 65% LTV fell by £5. Two-year fixed rates fell by £2 per month on 65% LTV mortgages and £1 on 75% LTVs.

Angus Stewart, chief executive Property Master, said:

“There have been a slew of rate cuts amongst lenders along with new offers being launched that are looking very attractive to landlords wanting to expand their portfolios or needing to remortgage.”

He added: “Good news on rates may well entice some landlords back into the market by helping them offset the many recent regulatory and tax costs they have been struggling to absorb.”

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:


Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT