Coventry Building Society’s 43% Surge in Mortgage Advances: What London Landlords Must Know About New Limited Company Buy-to-Let Products

Coventry BS’s Mortgage Growth and Limited Company Buy-to-Let Launch

In 2025, Coventry Building Society (Coventry BS) reported a 43% increase in mortgage advances, reaching £9.6 billion and growing its market share to 4.2%, according to Mortgage Strategy. A key driver behind this growth was the launch in April 2025 of its limited company buy-to-let mortgage proposition, which has attracted over £1 billion in applications. This product targets landlords operating via limited company structures—a model increasingly popular for tax efficiency and liability management.

Simultaneously, Coventry BS strengthened its financial base by bringing The Co-operative Bank back into mutual ownership, a move that may influence future lending and servicing capabilities.

Why This Development Matters to London Landlords

The rise of limited company B2L mortgages offers landlords an alternative path to finance property acquisitions and portfolio expansion. However, these products come with distinct eligibility criteria, underwriting standards, and documentation requirements compared to traditional individual buy-to-let mortgages.

For landlords and letting agents, especially those managing portfolios or HMOs through limited companies, understanding these nuances is critical to ensuring compliance and optimising financing structures.

Practical Implications Across Landlord Profiles

• Single-Unit Landlords and Accidental Landlords: While many still operate as individuals, those considering scaling up or forming a limited company may find Coventry BS's new product appealing. They should assess whether incorporating aligns with their investment strategy and be aware of the new mortgage eligibility and underwriting benchmarks.

• Portfolio Landlords: Larger investors using limited company structures will need to ensure their financing arrangements comply with Coventry BS’s updated product criteria. This includes meeting the lender’s documentation requests and potentially adjusting property management workflows to accommodate new financial disclosure obligations.

• HMO Landlords: Limited company ownership is common for HMOs given liability considerations. These landlords must scrutinise the underwriting criteria carefully, as HMOs often face stricter lending standards.

Compliance and Documentation Obligations

Letting agents and landlords using Coventry BS’s limited company B2L mortgages must:

• Familiarise themselves with the updated eligibility criteria and underwriting conditions, which may vary from previous loan products.
• Ensure all required financial disclosures and documentation are completed accurately and submitted promptly.
• Update internal compliance protocols and client advisory materials to incorporate guidance on these new mortgage products.

Failing to meet these obligations risks loan application delays, compliance breaches, or financial penalties.

Strategic Risk Mitigation and Next Steps for Property Teams

1. Review Mortgage Terms Immediately: Obtain and study the detailed terms and conditions of Coventry BS’s limited company B2L mortgage offering. Pay attention to loan-to-value ratios, interest rates, fees, and borrower eligibility.

2. Update Compliance Frameworks: Adjust compliance checklists, client onboarding workflows, and documentation templates to reflect new requirements.

3. Train Staff and Agents: Ensure all relevant teams understand the product's specifics, especially those handling mortgage applications and landlord advisory services.

4. Verify Client Eligibility Early: Screen existing and prospective landlords for alignment with Coventry BS’s criteria to prevent application issues.

5. Monitor Regulatory Changes: Track any forthcoming updates affecting buy-to-let lending structures, especially those driven by mutual ownership shifts or policy changes linked to The Co-operative Bank's acquisition.

6. Plan Portfolio Strategy: Landlords should consider how limited company borrowing fits within their broader investment and tax planning objectives, potentially consulting specialist advisors.

The Co-operative Bank Mutual Ownership Impact

The return of The Co-operative Bank to mutual ownership under Coventry BS’s umbrella enhances the society’s financial robustness. This may translate into more competitive mortgage products or improved servicing quality. Property teams should watch for operational changes affecting mortgage administration or customer service.

How Rentals & Sales Can Support Your Landlord Operations

Our team offers tailored portfolio reviews to assess the suitability of limited company ownership and mortgage products for your assets. We provide compliance audits to ensure your documentation and advisory processes meet the latest lender and regulatory standards. Additionally, we deliver pricing strategy consultations to optimise returns under evolving finance conditions.

Compliance Disclaimer

This article is for general informational purposes and does not constitute financial or legal advice. Landlords and letting agents should consult qualified professionals before making decisions related to mortgage products or company structures.