The UK buy to let mortgage market may feel quiet, but dig a little deeper and plenty is going on. From lender repricing to new criteria and signs of housing market recovery. Here’s a roundup of the latest developments that could impact your property investment strategy.
SWAP Rates: Holding Steady
SWAP rates remain largely unchanged, with two-year SWAPs at 3.65% and five-year SWAPs at 3.73%. While these figures represent a slight increase month-on-month, they’re broadly stable year-on-year. This stability means lenders’ cost of funds hasn’t shifted dramatically, and we’re not expecting any major changes unless the Bank of England surprises us with a rate move.
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Lender Pricing: Downward Movement Despite Summer Lull
Summer tends to be a quiet time for lenders, with many staff on holiday and fewer product changes. That said, we’ve seen some positive movement in pricing.
Yorkshire Building Society’s (YBS) commercial arm has reduced its rates by 0.05%. It continues to offer strong support for limited company lending, particularly for larger deals in the £750,000 to £3 million range.
Capital Home Loans (CHL) has also made a notable move, significantly lowering its rates thanks to a new funding line. This makes it a compelling option for specialist cases and landlords with larger portfolios. Vida Home Loans has followed suit, maintaining its focus on specialist lending with reduced pricing.
Meanwhile, Virgin Money has trimmed its rates by up to 0.07%. Although they don’t cater to HMOs or multi-unit properties, they remain a solid choice for individual landlords, especially those looking to remortgage within six months of purchase.
Another Lender Enters the 85% LTV Arena
Foundation Home Loans (FHL) has launched 85% loan-to-value products for individuals and Limited Companies. These five-year fixed rates start from 6.49% with no product fee, making them highly competitive in a space with limited options. Their broader lending criteria also mean they have product ranges covering expats, holiday lets, semi-commercial properties, and borrowers with imperfect credit profiles.
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A Big Name Joins Limited Company Lending
BM Solutions has finally entered the Limited Company lending space, a move that reflects the growing dominance of SPVs in buy to let investing. Around 85% of landlords now use Limited Companies, and BM’s entry marks a shift in how mainstream lenders are approaching this market.
The criteria are relatively straightforward: only SPVs are accepted, with no trading or layered companies allowed. Up to four directors or shareholders are permitted, all of whom must provide full personal guarantees. Floating charges and debentures are prohibited, and companies must be registered in England, Wales, or Scotland. Expats and Northern Ireland-based companies are excluded.
BM Solutions currently does not offer further advances, but they plan to introduce product transfers later down the line. Their rates start from 3.99% with a 3% fee, making them a competitive option for landlords seeking simplicity and cost-efficiency.
Housing Market: Signs of Recovery Emerging
While the housing market remains sluggish, recent Bank of England data shows a rise in mortgage borrowing and approvals, the highest since October 2022. Consumer credit is also up, suggesting confidence may be returning.
Industry experts agree: we’re not in full recovery mode yet, but the green shoots are visible. As mortgage rates soften and lending criteria relax, buyer demand is expected to increase heading into autumn.
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Final Thoughts
Whether expanding your portfolio or considering a refinance, now’s a good time to review your options. With new lenders entering the Limited Company space and pricing becoming more competitive, landlords have more choice than ever. And with signs of recovery in the housing market, autumn could be when things start to move again.
All rates quoted as at July 2025 and subject to change.
Next steps
Call us if you’d like tailored advice or help navigating the latest criteria. And don’t forget to sign up for our upcoming webinar on auction purchases, an increasingly popular route for savvy investors.
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