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Lenders Cut Mortgage Rates to Attract Landlords

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Wed 03 Dec 2025

Lenders Cut Mortgage Rates to Attract Landlords

Lenders are currently reducing interest rates and fees to appeal to landlords and landlords with holiday lets, offering better deals across buy-to-let (BTL) and expat mortgage lines.

What’s Changing

  • Dudley Building Society has updated its mortgage offerings: a 2-year fixed rate at 5.70% for loans up to 80% loan-to-value (LTV), plus a 2-year discounted option at 2.99% below the society’s standard variable rate for loans up to 70% LTV. 

  • For holiday-let mortgages, Dudley now offers a 2-year fixed rate at 5.90% and a 5-year fixed at 5.80%, both up to 80% LTV.

  • Their arrangement fees vary — either £750 or £1,499 — depending on the term and LTV for both BTL and holiday-let deals. 

  • Meanwhile, Vernon Building Society has launched a new Expat Buy-to-Let mortgage: a 2-year discount rate at 5.29% (about 2.31% off their standard variable rate of 7.60%), for up to 75% LTV and loans up to £1 million. This product is available to both limited-company and personal landlords — including first-time landlords. 

  • And Cumberland Building Society has lowered its core holiday-let rates by 0.20%, cutting its two- and five-year fixed rates from 4.98% down to 4.78%, with a standard £999 arrangement fee — for both purchases and remortgages. 

Why These Moves?

According to lenders, these rate reductions reflect demand and feedback from brokers — especially from landlords seeking more competitive and affordable mortgage options.

For holiday-let owners and landlords with expat or limited-company arrangements, the new products aim to match growing demand in these sectors. 
 

What It Means for Landlords

  • Landlords looking to get new BTL or holiday-let mortgages may find better value now, especially if they can meet the LTV and fee conditions.

  • Expat landlords or those using limited-company structures may benefit from improved access under the new expat-friendly mortgage product from Vernon Building Society.

  • Lower fixed rates — if they fit your property type and borrowing needs — could reduce monthly costs and improve the financial viability of letting.