The Cambridge Reintroduces Fixed-Rate Mortgages: What London Landlords Need to Know

A welcome return: The Cambridge’s fixed-rate mortgage range

The Cambridge Building Society has reintroduced a variety of fixed-rate mortgage products, including two- and five-year fixed terms available up to 95% loan-to-value (LTV). These products cover residential, buy-to-let (BTL), and retirement interest-only mortgages, expanding fixed-rate options in a market where lenders have tightened lending for higher LTVs.

Why this matters to landlords

In recent years, rising interest rates and lender caution have made securing competitive fixed-rate mortgages challenging, especially for BTL investors and those needing higher LTVs. Fixed rates offer cost certainty, helping landlords budget and set rents confidently.

The Cambridge’s return to fixed-rate deals up to 95% LTV is notable, as many lenders limit BTL fixed options to lower LTVs. This could benefit accidental landlords or smaller portfolio holders seeking to fix borrowing costs without a large deposit.

Practical implications by landlord profile

• Single-unit landlords: Two- and five-year fixed terms provide flexibility. A five-year fix offers longer-term stability if you plan to hold, while a two-year fix suits those considering refinancing or selling sooner.

• HMO and portfolio landlords: Fixing rates up to 95% LTV may help leverage equity more effectively, though underwriting varies—check The Cambridge’s HMO policies with your broker.

• Accidental landlords: Fixed-rate options can help manage costs and reduce uncertainty as you decide your long-term strategy.

• Retirement interest-only borrowers: Fixed rates add predictability to repayments, crucial for those on fixed incomes.

Compliance and operational considerations

Landlords and letting agents must update mortgage advice and affordability assessments to reflect these new fixed-rate offerings. Using outdated rates risks non-compliance and mis-selling claims. Ensure mortgage applications use current product terms to maintain regulatory standards.

Internally, update mortgage product databases and train staff or advisers on these new options to provide accurate advice—especially important where fixed costs impact profitability and rent levels.

Next steps for landlords and agents

1. Review your current mortgage deals to see if The Cambridge’s new fixed-rate products are more competitive.
2. Consult your mortgage broker to assess suitability, factoring in fees and early repayment charges.
3. Update advice materials and client communications to include these new options.
4. Monitor market developments to stay ahead of further lender changes.

How Rentals & Sales can support you

Our team offers portfolio reviews and compliance audits to ensure your mortgage arrangements align with market offerings and regulatory requirements. We also provide pricing strategy advice tailored to fixed-rate options to help optimise rental income and tenant retention.

Compliance disclaimer: This article is for informational purposes only and does not constitute financial advice. Consult qualified mortgage advisers before making borrowing decisions.