Buy-to-Let Watch Episode 03 | In the previous instalment of Buy-to-Let Watch, we explored key market insights for brokers and highlighted why landlords benefit from choosing their lender with care. In this episode, we turn our attention to the growing wave of innovation reshaping the UK buy-to-let landscape. Lenders and financial institutions are adopting smarter tools and operational strategies to enhance their market position and offer greater value to property investors.

A clear example of this progress is the integration of lenders such as Vida, Fleet, Together and Zephyr into eTech’s BTL Hub. This type of collaboration streamlines the underwriting process for portfolio landlords, reducing administrative pressure and improving the overall application experience. It reflects the sector’s wider commitment to delivering faster, more efficient systems for advisers and clients.

At the same time, lenders are refining their criteria to create fresh opportunities in developing market segments. Foundation Home Loans, for instance, has introduced greater flexibility by permitting specific buy-to-let remortgage options before a property has been owned for six months. This responsiveness allows investors to act quickly when favourable finance opportunities arise, supporting more dynamic portfolio planning.

For advisers seeking deeper guidance on lender criteria or portfolio strategies, you can explore our dedicated buy-to-let mortgage guide resources.

Expanding Markets and Lending Innovation in 2019

The UK mortgage landscape in 2019 experienced notable shifts as lenders extended their reach into emerging and previously underserved sectors. A growing number of institutions began offering products designed specifically for HMO investments, reflecting increased demand from landlords seeking higher-yield opportunities. At the same time, lenders broadened their criteria to support expat borrowers, short-term holiday lets, and properties operated through platforms such as Airbnb. These changes opened the door for investors to diversify their portfolios beyond traditional buy-to-let models.

While these developments marked meaningful progress, there was still a clear need for greater innovation. Borrower expectations were evolving rapidly, and the market required products that offered more flexibility, efficiency, and adaptability. For advisers reviewing buy-to-let mortgage options, keeping pace with these shifts became essential for delivering informed guidance.

One example of forward-thinking product design came from Hampshire Trust Bank, which introduced a five-year fixed-rate mortgage featuring an unusually short early repayment charge of just two years. This structure offered landlords the long-term security of a fixed rate while providing welcome flexibility should their investment plans change. The use of a five-year rental calculation also provided borrowers with greater predictability during a period of ongoing market adjustment.

These product enhancements reflected a broader shift toward a more dynamic lending environment. By exploring new ways to structure affordability, risk, and repayment, lenders could better support the diverse and evolving needs of property investors. For brokers working with landlords, partnering with institutions that embrace innovation — and understanding the full range of solutions available became increasingly valuable. You can explore a wider overview of specialist lender access through our internal resources on lender support.

Innovation remained a central driver of progress throughout the mortgage sector in 2019. Lenders willing to adapt and rethink traditional models played a key role in shaping a more responsive and competitive market. For investors and advisers alike, staying informed about these lending shifts helped uncover new opportunities and strengthen long-term decision-making in an increasingly complex landscape.

Exploring New Approaches to Refurbishment Finance in the Buy-to-Let Market

The refurbishment buy-to-let market gained significant momentum in 2019, driven by lenders developing products designed to give landlords greater certainty and smoother exit paths. Precise helped shape this space with a refurbishment-led BTL proposition that offered investors clarity over their post-works valuation and the funds they could raise once improvements were completed.

Around the same time, Clydesdale strengthened competition by introducing a bridge-to-term model that opened a new level of flexibility for clients. Unlike more traditional structures, this approach allowed landlords to exit onto a residential mortgage rather than being limited to a standard buy-to-let term option. For many investors, this created alternative routes for long-term planning and refinancing.

Kensington also made headlines with a fresh interpretation of the PRA portfolio rules, reshaping how portfolio landlord status could be assessed. Their stance excluded properties held in separate legal entities when determining whether a client met portfolio criteria. This proved particularly beneficial for investors with mixed ownership structures.

For instance, a landlord with several properties in their personal name who then acquired their first purchase through a limited company would not automatically be considered a portfolio landlord. As a result, they could access the simpler underwriting process reserved for non-portfolio clients, a meaningful advantage for investors seeking efficiency and clear affordability pathways.

These developments collectively broadened opportunities for landlords and intermediaries, reinforcing why specialist lenders continue to drive innovation in the BTL sector. For advisers supporting investors today, reviewing buy-to-let mortgage support can help identify modern solutions that build on these earlier market shifts.

Innovative Buy-to-Let Approaches in 2019: West One, Lendco and Precise

In 2019, the buy-to-let market saw several specialist lenders introduce new ideas to support landlords and improve refinancing options. Three notable examples came from West One, Lendco, and Precise, each responding to investor demand for more flexible, outcome-focused lending.

West One – Faster Remortgage Solutions

West One brought a new angle to BTL remortgaging by adapting the streamlined legal process commonly used for second-charge borrowing and applying it to buy-to-let refinancing, enabling cases to be completed far more quickly, including capital-raising scenarios. This approach gave landlords a much smoother path to portfolio restructuring.

Lendco – Holiday Let Affordability with Real-World Income

Lendco differentiated itself by designing products specifically for holiday-let investors. Instead of applying traditional buy-to-let affordability assessments, Lendco based its calculations on the actual income generated from short-term rental activity.

For remortgages, they assessed affordability using the average business profit from the previous year. For purchases, they relied on projected income figures supplied by a holiday-let agent. This method provided a more accurate reflection of the way furnished holiday lets operate, helping landlords secure finance that aligned with their business model.

Precise – Income-Supported Flexibility for Investors

Precise added further innovation by launching an income-assisted buy-to-let product. This allowed landlords with high surplus income from their wider property portfolios to offset any rental shortfall on the new application. By bridging the gap with proven personal or portfolio income, many investors could opt for shorter two-year fixed rates rather than locking into longer five-year terms.

A More Responsive Market for Landlords

Together, the 2019 initiatives from West One, Lendco and Precise reflected a deeper understanding of landlords’ evolving needs. These lenders recognised that investors required flexible affordability assessments, faster refinancing pathways and product choices that aligned with real market behaviour. Their willingness to innovate set the tone for a more responsive and opportunity-driven buy-to-let landscape.

JOIN OUR NETWORK

Thank you for reading our Buy-to-Let Watch Episode 03 | Market Update for Landlords” publication. Stay “Connect“-ed for more updates soon!

FAQ | Buy-to-Let Innovation