Pepper Money Slashes Buy-to-Let Rates to 3.94%: What London Landlords Must Do Now

Pepper Money’s Rate Cuts: A Timely Opportunity for Landlords

Pepper Money, a key specialist lender in the UK buy-to-let (BTL) market, has lowered its mortgage rates across various loan-to-value (LTV) tiers. The headline figure is a reduced five-year fixed rate starting at 3.94% for loans at 70% LTV. This includes houses in multiple occupation (HMOs), with added incentives such as cashback and free valuations for properties valued up to £500,000.

This move is significant as the buy-to-let sector prepares for a 2026 surge in remortgage volumes driven by fixed term expiries and lending criteria changes. Pepper Money’s competitive pricing supports landlords and brokers with more affordable funding before this wave.

Why This Matters to London Landlords

London landlords, from single-property owners to portfolio investors, can benefit from these rate reductions. Lower mortgage interest improves cash flow, net yields, and overall investment viability.

• Single-unit landlords can reduce monthly costs, freeing funds for maintenance or reinvestment.
• HMO operators gain tailored rates and incentives enhancing project feasibility.
• Portfolio landlords should assess aggregate savings across multiple mortgages.
• Accidental landlords must ensure they don’t miss refinancing deadlines that could lock them into higher rates.

Practical Steps to Take Immediately

1. Review Current Mortgage Terms and Remortgage Dates
   • Identify when current mortgage deals expire, as many fixed terms end in 2026.
2. Obtain Updated Mortgage Quotes from Pepper Money
   • Contact brokers or Pepper Money directly for personalised quotes including new rates and incentives.
3. Evaluate Eligibility for Cashback and Free Valuation Offers
   • Confirm if your property meets the £500,000 valuation cap and other criteria.
4. Update Financial Forecasts and Rent Reviews
   • Incorporate savings into cash flow projections to support rent adjustments or upgrades.
5. Communicate with Letting Agents and Brokers
   • Ensure agents know about new rates to advise on pricing and tenant discussions.
6. Monitor Market Trends and Lending Criteria
   • Stay informed of further changes from Pepper Money and other lenders.

How Rentals & Sales Can Support Your Strategy

Our landlord intelligence hub offers bespoke support to London landlords:

• Portfolio Reviews: Analyse mortgage arrangements and identify cost-saving opportunities.
• Compliance Audits: Ensure refinancing aligns with lender and regulatory requirements.
• Pricing Strategy: Advise on rent setting considering improved mortgage rates and market trends.
• Remortgage Workflow Assistance: Help manage remortgaging schedules to avoid last-minute pressures.

Contact our team to book a tailored consultation for your property portfolio and investment goals.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Landlords should consult qualified mortgage brokers or financial advisors before making lending decisions.