blog mortgage118

Tag: Buy to Let

  • Buy-to-Let Market Sees Major Structural Changes

    Buy-to-Let Market Sees Major Structural Changes

    The UK buy-to-let market is currently experiencing significant structural changes, marking a pivotal moment for landlords and investors. Recent research highlights a notable shift in how buy-to-let purchases are being financed, with a growing number of investors opting for limited companies.

    TL;DR: In 2025, 43% of all buy-to-let purchases in the UK were completed through limited companies, up from 35% in 2024; this indicates a shift in investor behaviour that could impact tax efficiency and borrowing strategies.

    What is Driving the Shift to Limited Companies?

    According to recent findings, the percentage of mortgaged buy-to-let purchases made through limited companies has surged to 43% in 2025, a significant increase from just 35% in 2024 and below 8% in 2018. This trend suggests that more landlords are recognising the potential tax benefits and financial advantages of incorporating their property investments.

    How Does This Affect Landlords?

    The shift towards limited company structures is reshaping the profile of landlords in the UK. Previously, limited company buy-to-let mortgages were primarily associated with larger investors holding extensive property portfolios. However, as the market evolves, even basic-rate taxpayers with one or two properties are beginning to consider incorporation. This change could lead to a more diverse range of landlords entering the market, each with varying financial strategies.

    What Should Buy-to-Let Investors Watch Next?

    Investors need to stay informed about the implications of this structural change. As the market shifts, understanding the nuances of limited company buy-to-let mortgages will be essential. Investors should monitor potential changes in tax legislation and mortgage products that may arise as more individuals adopt this model. Additionally, the evolving market dynamics may influence property values and rental yields, making it important for investors to reassess their strategies regularly.

    What This Means for Mortgage Brokers

    Mortgage brokers play a vital role in guiding clients through the complexities of the buy-to-let market. With the increasing prevalence of limited company purchases, brokers must equip themselves with knowledge about the specific products available for these structures. Understanding the unique needs of both seasoned investors and new landlords will be key to providing effective advice and securing suitable financing options.

    Frequently asked questions

    What are the benefits of using a limited company for buy-to-let?

    Using a limited company for buy-to-let can offer tax advantages, such as the ability to deduct mortgage interest as a business expense, which may not be available to individual landlords.

    How can I determine if a limited company structure is right for me?

    Assessing your property portfolio size, tax position, and long-term investment goals can help determine if a limited company structure is beneficial. Consulting with a financial advisor or mortgage broker can provide tailored guidance.

  • Mortgage Market Update: Santander, HSBC, and Accord Rates Drop

    Mortgage Market Update: Santander, HSBC, and Accord Rates Drop

    The mortgage market is experiencing a notable shift as Santander, HSBC, and Accord Mortgages announce reductions in their mortgage rates. This change is significant for borrowers, particularly first-time buyers and landlords, as it presents new opportunities for more affordable borrowing.

    TL;DR: Santander has cut mortgage rates by up to 17 basis points, affecting new business rates for first-time buyers and remortgages; HSBC has also reduced rates for similar products, making it a pivotal moment for borrowers seeking lower costs.

    What mortgage rates are being reduced in the mortgage market?

    Several mortgage products from Santander have seen substantial rate cuts. For instance, its two-year fixed homemover product at 60% loan to value (LTV) has dropped to 4.43%, down 17 basis points. The five-year fixed equivalent is now priced at 4.44%. Other reductions include a two-year fix with a £999 fee and £250 cashback, now at 4.48%, and a fee-free deal reduced to 4.73%. Higher LTV options also saw decreases, with the two-year fix at 90% LTV now at 4.82%.

    How are HSBC and Accord responding to the mortgage market changes?

    HSBC has implemented similar cuts effective from 3 June. Its two-year fixed rate for first-time buyers at 60% LTV is now 4.85%, down from 4.95%, with cashback reduced from £500 to £250. The five-year fixed rates for first-time buyers have also been adjusted, with the fee-free option now at 4.73%. Meanwhile, Accord Mortgages plans to lower its buy-to-let (BTL) mortgage rates starting 5 June, with reductions of up to 0.3% on two-year fixed rates.

    What does this mean for borrowers and landlords in the mortgage market?

    These rate cuts are particularly beneficial for first-time buyers and landlords looking to remortgage or invest in new properties. The reductions provide a chance for borrowers to secure lower monthly payments, which can significantly impact overall affordability. For landlords, the adjustments in BTL rates by Accord could enhance cash flow and investment potential in a competitive rental market.

    What should borrowers watch for next in the mortgage market?

    As the mortgage market evolves, borrowers should keep an eye on further rate changes from other lenders, as competition may drive prices down even more. Additionally, monitoring cashback offers and fees associated with mortgage products will be important for making informed decisions. For those considering a mortgage, now could be an opportune time to explore mortgage rate comparisons to find the best deals available.

    Frequently asked questions

    What impact do these mortgage rate cuts have on first-time buyers?

    The cuts provide first-time buyers with more affordable borrowing options, potentially lowering monthly payments and making homeownership more accessible.

    How can landlords benefit from the recent mortgage changes?

    Landlords can take advantage of reduced BTL mortgage rates, which may improve cash flow and overall investment returns in the rental market.

  • Buy-to-Let Market Faces Major Structural Changes

    Buy-to-Let Market Faces Major Structural Changes

    The UK buy-to-let sector is currently experiencing significant structural changes, marking a pivotal shift in how property investment is approached. This transformation is underscored by a notable increase in the number of buy-to-let purchases being made through limited companies, reflecting evolving strategies among landlords and investors.

    TL;DR: In 2025, 43% of all mortgaged buy-to-let purchases in the UK were completed via limited companies, up from 35% in 2024; this trend indicates a major shift in landlord behaviour and investment strategies.

    What is Driving the Change in Buy-to-Let?

    According to Joseph Lane, a mortgage broker and property investor, the data from Paragon Bank reveals a transformation in the buy-to-let market that goes beyond mere tax efficiency. The increase in limited company purchases—from just 8% in 2018 to 43% in 2025—suggests a fundamental change in landlord profiles and investment motives. Investors are adapting to new regulations and market conditions, leading to a more strategic approach to property investment.

    Who is Affected by These Changes?

    The shift towards limited company structures is impacting a wide range of stakeholders in the property market. Traditionally, limited company buy-to-let mortgages were considered niche products aimed at seasoned investors with extensive portfolios. However, as the market evolves, even basic-rate taxpayers with one or two properties may find themselves considering incorporation as a viable option. This trend could broaden the market for limited company mortgages, making them more accessible to a wider array of landlords.

    What This Means for Landlords and Investors

    For landlords, the shift towards limited company ownership could offer various advantages, particularly in terms of tax implications and financial planning. The changing profile of landlords indicates a move towards more sophisticated investment strategies, which may include leveraging company structures for better financial outcomes. Investors should be aware that the traditional model of buy-to-let is evolving, and adapting to these changes will be important for long-term success in the market.

    Frequently Asked Questions

    What are the benefits of using a limited company for buy-to-let?

    Using a limited company for buy-to-let can provide tax advantages, such as the ability to deduct mortgage interest from profits, which may not be available to individual landlords. It also allows for easier transfer of ownership and can provide limited liability protection.

    How can I assess my affordability for a buy-to-let mortgage?

    To assess your affordability for a buy-to-let mortgage, you can use a BTL affordability calculator. This tool will help you evaluate your potential rental income against your mortgage costs and other expenses.

  • Landlords Shift Focus to Energy-Efficient Properties

    Landlords Shift Focus to Energy-Efficient Properties

    Buy-to-let landlords are increasingly prioritising energy-efficient homes as they prepare for upcoming changes to energy performance regulations set to take effect in 2030. Paragon Bank has reported a significant rise in lending for properties with Energy Performance Certificate (EPC) ratings of A-C, reflecting a broader trend among landlords to enhance their portfolios with more sustainable options.

    TL;DR: Paragon Bank’s buy-to-let lending for EPC A-C properties has risen significantly; landlords are adapting to 2030 energy efficiency rules.

    What are the upcoming EPC changes?

    New regulations will require rental properties in the UK to meet minimum energy efficiency standards by October 2030. This means that properties must have an EPC rating of at least ‘C’ to be legally rented out. As a result, landlords are beginning to invest in energy-efficient upgrades to comply with these forthcoming requirements.

    How is lending changing for landlords?

    Paragon Bank’s recent financial results indicate a growing trend among buy-to-let landlords towards energy-efficient properties. Lending for EPC A-C rated homes has increased compared to the same period in the previous year. Energy-efficient properties now account for a significant portion of Paragon’s buy-to-let lending, reflecting a shift in landlord priorities.

    What does this mean for landlords?

    For landlords, this shift towards energy-efficient properties is not just about compliance; it also represents a strategic move to enhance the value and appeal of their rental offerings. As tenant demand for sustainable living spaces rises, landlords who invest in energy-efficient upgrades may find themselves better positioned in the market. Additionally, properties with higher EPC ratings could attract more tenants and potentially command higher rents.

    What is the current performance of buy-to-let lending?

    Paragon Bank’s overall mortgage loan book has grown, supported by new buy-to-let lending. The bank’s new business pipeline reflects an increase year-on-year. Notably, the credit performance of Paragon’s buy-to-let assets remains strong, with arrears lower than the sector average.

    Frequently asked questions

    What should landlords do to prepare for the 2030 EPC regulations?

    Landlords should assess their properties’ current EPC ratings and consider making necessary upgrades to improve energy efficiency. This may involve investing in insulation, energy-efficient heating systems, and other sustainable features.

    How can landlords benefit from energy-efficient properties?

    Energy-efficient properties can attract more tenants, potentially leading to higher rental income. Additionally, they may reduce long-term maintenance costs and enhance the property’s market value.

  • Mortgage Market Update: Santander, HSBC, Accord Rates Drop

    Mortgage Market Update: Santander, HSBC, Accord Rates Drop

    Recent reductions in mortgage rates by major lenders Santander, HSBC, and Accord are making waves in the UK mortgage market. These cuts, which range up to 17 basis points, are significant for borrowers, particularly first-time buyers and those looking to remortgage, as they could lead to lower monthly repayments and increased affordability.

    TL;DR: Santander, HSBC, and Accord have reduced mortgage rates by up to 17bps; this impacts first-time buyers and remortgagers, improving affordability.

    What mortgage products have seen rate cuts in the mortgage market?

    Santander has implemented notable reductions across its mortgage offerings. For example, its two-year fixed homemover product at 60% loan to value (LTV) has seen a decrease to 4.43%, down from previous rates. Additionally, the five-year fixed option is now priced at 4.44%. Other reductions include a two-year fix with a £999 fee and £250 cashback, which has dropped to 4.48%, and a fee-free deal now at 4.73%. For higher LTV options, the two-year fix at 90% LTV has been reduced to 4.82%, while the fee-free option is now 5.07%.

    How are HSBC and Accord adjusting their rates?

    HSBC has also made strategic cuts effective from June 3. Their two-year fixed mortgage for first-time buyers at 60% LTV has dropped from 4.95% to 4.85%, with cashback incentives reduced from £500 to £250. The five-year fixed deals have similarly seen reductions, with the fee-free mortgage now at 4.73% and cashback down to £350. Accord Mortgages is set to lower buy-to-let rates from June 5, with two-year fixed rates decreasing by up to 0.3% and five-year fixes by up to 0.22%.

    What does this mean for borrowers and landlords in the mortgage market?

    These rate cuts are particularly beneficial for first-time buyers and those looking to remortgage, as they provide opportunities for lower monthly payments and improved affordability. With Santander and HSBC adjusting their offerings, borrowers may find a more attractive range of options, especially at higher LTVs. Landlords looking to refinance or expand their portfolios via buy-to-let mortgages will also benefit from the upcoming reductions from Accord. This shift in the mortgage market may prompt borrowers to reassess their current mortgage arrangements and consider switching lenders.

    Frequently asked questions

    How can I take advantage of these lower mortgage rates?

    To benefit from the lower mortgage rates, consider reviewing your current mortgage terms and exploring new deals from lenders like Santander, HSBC, and Accord. Consulting with a mortgage broker can help you find the best option for your financial situation.

    Are these rate cuts expected to continue?

    While these reductions indicate a competitive mortgage market, future rate movements will depend on broader economic conditions, including inflation and central bank policies. Keep an eye on updates from lenders and market trends.

  • Landlords Embrace Energy-Efficient Properties Ahead of 2030 Changes

    Landlords Embrace Energy-Efficient Properties Ahead of 2030 Changes

    Buy-to-let (BTL) landlords are increasingly focusing on energy-efficient homes as new energy performance certificate (EPC) regulations loom. Paragon Bank’s latest financial results reveal a significant uptick in lending for properties rated EPC A-C, reflecting landlords’ proactive approach to comply with the upcoming minimum energy efficiency standards set to take effect in October 2030.

    TL;DR: Paragon Bank reported an increase in new buy-to-let lending for energy-efficient properties; landlords are adapting to upcoming EPC regulations.

    Why Are Landlords Shifting Towards Energy-Efficient Homes?

    With the UK government planning to enforce stricter EPC regulations by 2030, landlords are recognising the importance of investing in energy-efficient properties. Paragon Bank’s half-year results indicate that a growing share of their buy-to-let lending was secured against properties with EPC ratings of A-C, showing a shift from the previous year. This trend not only aligns with regulatory requirements but also enhances the long-term value of rental properties.

    What Are the Financial Implications for Landlords?

    The increase in lending for energy-efficient properties suggests a growing market trend that could influence property values and rental demand. Paragon Bank’s total buy-to-let lending saw notable growth, indicating strong interest in financing energy-efficient homes. As landlords adapt to these changes, they may find that properties with higher energy efficiency ratings attract more tenants and potentially command higher rents.

    What This Means for Landlords

    Landlords should consider the potential benefits of investing in energy-efficient properties, not only to comply with future regulations but also to improve their competitiveness in the rental market. With lower energy costs and increased tenant demand for sustainable living options, properties that meet higher EPC standards could see enhanced profitability. Furthermore, Paragon Bank’s strong credit performance suggests that investing in energy-efficient homes may also mitigate financial risks.

    Frequently Asked Questions

    How can landlords prepare for the 2030 EPC regulations?

    Landlords should assess their current properties’ EPC ratings and consider renovations or upgrades to meet the A-C standards. Engaging with energy efficiency experts can provide insights into the most effective improvements.

    What financing options are available for energy-efficient properties?

    Landlords can explore buy-to-let mortgage rates specifically tailored for energy-efficient homes, which may offer more favorable terms and conditions.

  • Mortgage Market Update: Santander, HSBC, Accord Rates Cut

    Mortgage Market Update: Santander, HSBC, Accord Rates Cut

    Major lenders Santander, HSBC, and Accord Mortgages have announced reductions in their mortgage rates, impacting a range of products for borrowers. These changes reflect a competitive mortgage market, potentially easing the financial burden for new buyers and remortgagers alike.

    TL;DR: Santander and HSBC have cut mortgage rates; first-time buyers and remortgagers will benefit from these new lower rates.

    What mortgage rates have been reduced in the mortgage market?

    Santander has lowered its mortgage rates across various products, with notable cuts for two-year fixed rates. For example, its two-year fixed rate for homemovers at 60% loan to value (LTV) has dropped to a new lower rate. The five-year fixed equivalent has also been adjusted. Additionally, the two-year fixed option with a fee and cashback is now priced at a reduced rate, while the fee-free deal has decreased to another lower rate.

    For higher LTV options, the two-year fixed rate at 90% LTV has been reduced. The corresponding five-year fixed rates have also seen reductions.

    How are HSBC’s offerings changing in the mortgage market?

    HSBC has also made significant adjustments to its mortgage offerings, effective from June 3. Its two-year fixed rate for first-time buyers at 60% LTV has decreased to a new lower rate. The cashback incentive has been reduced. Similar reductions apply to five-year fixed deals, with the fee-free mortgage at 60% LTV now at a lower rate, and cashback reduced.

    These changes may influence first-time buyers looking for affordable entry points into the property market.

    What does this mean for landlords and investors in the mortgage market?

    Accord Mortgages is set to lower buy-to-let (BTL) mortgage rates starting June 5, with two-year fixed rates reduced by a notable amount, three-year fixes by another amount, and five-year fixes by yet another amount. This move could make BTL investments more attractive as borrowing costs decrease, potentially leading to increased activity in the rental market.

    Landlords should consider these adjustments when evaluating their financing options, as lower rates can improve cash flow and profitability.

    What should borrowers and brokers watch for next in the mortgage market?

    With these recent reductions, borrowers should stay informed about ongoing changes in the mortgage market. It’s advisable for potential homebuyers and investors to compare current mortgage rates and explore various products to find the best fit for their financial situation. Brokers can play an important role in guiding clients through these options, particularly as lenders continue to adjust their offerings in response to market conditions.

    Frequently asked questions

    What types of mortgage products are affected by these changes?

    The recent rate cuts affect a variety of mortgage products, including two-year and five-year fixed rates for both first-time buyers and buy-to-let borrowers.

    How can I find the best mortgage rates available?

    Borrowers can compare current mortgage rates through online platforms or consult with mortgage brokers to identify the most competitive options tailored to their needs.

  • Landlords Embrace Energy-Efficient Homes Ahead of EPC Changes

    Landlords Embrace Energy-Efficient Homes Ahead of EPC Changes

    Buy-to-let landlords are increasingly focusing on energy-efficient properties as new energy performance standards loom on the horizon. With the UK government set to enforce minimum energy efficiency requirements in October 2030, lenders like Paragon Bank are reporting a significant uptick in lending for homes rated EPC A-C.

    TL;DR: Paragon Bank’s buy-to-let lending for energy-efficient homes has surged to £435.7 million, representing 56.4% of their new lending; landlords are adapting to upcoming EPC regulations.

    What’s Driving the Shift Towards Energy-Efficient Properties?

    Paragon Bank has noted a 7.7% increase in lending for EPC A-C rated homes during the first half of its financial year, with these properties now comprising over half of their buy-to-let lending. This trend reflects landlords’ proactive approach to comply with the impending EPC regulations, which will mandate that rental properties meet minimum energy efficiency standards.

    How Are Landlords Responding to EPC Changes?

    Landlords are strategically targeting properties with higher energy efficiency ratings to ensure compliance with the 2030 regulations. Louisa Sedgwick, managing director of Mortgages at Paragon Bank, highlighted that this shift is driven by the anticipation of stricter EPC rules. With the current lending environment, landlords are incentivised to invest in energy-efficient homes, which not only meet regulatory requirements but may also attract higher rental yields.

    What This Means for Landlords

    For landlords, the increased focus on energy-efficient properties can have several implications. Firstly, properties that meet higher EPC ratings may become more desirable to tenants, potentially leading to lower vacancy rates and higher rental income. Additionally, as lenders like Paragon Bank increase their lending for these properties, landlords may find more favourable mortgage terms available for energy-efficient homes. This shift could also lead to a more sustainable rental market, aligning with broader environmental goals.

    What Are the Current Trends in Buy-to-Let Lending?

    In the latest half-year results, Paragon Bank reported a total of £773.7 million in new buy-to-let lending, with an overall mortgage loan book growth of 2.9% to £14.1 billion. The bank’s new business pipeline also showed positive momentum, standing at £718.9 million at the end of March 2026, marking an 8.6% year-on-year increase. The strong credit performance of Paragon’s buy-to-let assets, with three-month arrears at just 0.50%, indicates a robust market for landlords.

    Frequently asked questions

    What are EPC ratings and why are they important for landlords?

    EPC ratings assess the energy efficiency of properties. They are important for landlords as upcoming regulations will require rental homes to meet minimum efficiency standards, impacting rental viability.

    How can landlords prepare for the upcoming EPC regulations?

    Landlords can prepare by investing in energy-efficient upgrades to their properties, ensuring they meet the required EPC ratings before the 2030 deadline.

  • The Tipton Cuts Buy-to-Let Mortgage Rates and Fees

    The Tipton Cuts Buy-to-Let Mortgage Rates and Fees

    Tipton & Coseley Building Society has announced a reduction in rates for select buy-to-let mortgage products, with cuts of up to 0.22%. This move is significant for landlords and property investors, as it enhances affordability and competitiveness in the buy-to-let market.

    TL;DR: The Tipton has reduced rates on buy-to-let mortgages by up to 0.22% and lowered arrangement fees; this benefits landlords seeking more affordable financing options.

    What are the new buy-to-let mortgage rates and fees?

    The Tipton has introduced a five-year fixed rate for expats at 5.68% for new purchases at 80% loan-to-value (LTV), now with a reduced arrangement fee of £900. Additionally, there’s a two-year fixed rate at 5.82% for 60% LTV. For limited company buy-to-let mortgages, a five-year fixed rate of 5.67% is now available, down from 5.89%, also at 80% LTV with a £900 arrangement fee. All products include a free standard valuation for properties valued up to £400,000, or a £350 contribution for higher values, plus £250 cashback towards legal costs.

    What does this mean for buy-to-let landlords?

    With these changes, landlords can access more competitive rates, which may improve cash flow and overall investment returns. The reintroduction of high income multiple mortgages allows for greater flexibility, enabling borrowers to secure financing based on income rather than just property value. This could be particularly beneficial for those looking to expand their property portfolios.

    What should borrowers watch for next in buy-to-let mortgages?

    As the market evolves, borrowers should keep an eye on further rate adjustments from other lenders, as well as any changes in lending criteria that may arise. Staying informed about the buy-to-let mortgage market will be essential for making strategic investment decisions.

    Frequently asked questions

    What types of buy-to-let mortgages does The Tipton offer?

    The Tipton offers various buy-to-let mortgage options, including five-year fixed rates for expats and limited company mortgages, with competitive rates and reduced fees.

    How can I calculate my buy-to-let mortgage affordability?

    You can use the BTL affordability calculator to assess how much you can borrow based on your income and expenses.

  • Landlords Embrace Energy-Efficient Properties Ahead of EPC Changes

    Landlords Embrace Energy-Efficient Properties Ahead of EPC Changes

    Buy-to-let landlords are increasingly focusing on energy-efficient properties as new energy performance certificate (EPC) regulations loom. With proposed minimum energy efficiency standards set to take effect in October 2030, lenders are adapting their offerings to align with this shift.

    TL;DR: Paragon Bank reports a 7.7% rise in new lending for buy-to-let properties rated EPC A-C, now making up 56.4% of its buy-to-let lending; landlords are responding to upcoming EPC regulations.

    Why Are Landlords Targeting Energy-Efficient Homes?

    Landlords are increasingly attracted to properties with higher energy efficiency ratings due to impending EPC regulations. Paragon Bank’s recent half-year results indicate that £435.7 million of new buy-to-let lending was secured against properties rated EPC A-C, reflecting a growing trend towards energy-efficient homes. This shift is driven by the need to comply with the new minimum energy efficiency standards that will be enforced from October 2030.

    What Are the Current Lending Trends?

    In the first half of its financial year, Paragon Bank reported that energy-efficient homes accounted for 56.4% of its buy-to-let lending, up from 49.9% in the same period last year. This increase demonstrates a significant shift in landlord preferences, as they seek to future-proof their investments against regulatory changes. Overall, Paragon’s mortgage loan book grew by 2.9% to £14.1 billion, supported by £773.7 million in new buy-to-let lending.

    What This Means for Landlords

    The growing emphasis on energy-efficient properties means landlords must consider the long-term viability of their investments. With the new EPC regulations on the horizon, properties that fail to meet the minimum standards may face reduced demand and lower rental yields. Landlords should start evaluating their portfolios and consider investing in energy-efficient upgrades to maintain competitiveness in the market.

    How Are Lenders Responding?

    Paragon Bank’s proactive approach to energy-efficient lending highlights a broader trend among lenders adapting to the evolving regulatory market. The bank’s new business pipeline stood at £718.9 million at the end of March 2026, marking an 8.6% increase year-on-year. The strong credit performance of Paragon’s buy-to-let assets, with three-month arrears at 0.50%, suggests that lenders are confident in the stability of this market segment.

    Frequently Asked Questions

    What are EPC ratings and why are they important for landlords?

    EPC ratings assess the energy efficiency of properties, with higher ratings indicating better energy performance. These ratings will become important as new regulations require minimum standards, impacting rental viability.

    How can landlords prepare for the upcoming EPC regulations?

    Landlords should evaluate their properties’ EPC ratings and consider making energy-efficient upgrades. Investing in improvements now can help ensure compliance and maintain rental income in the future.