TML Cuts Buy-to-Let Rates, Kensington Withdraws Products: What London Landlords Must Do Now

What Has Changed?

In a notable shift within the buy-to-let mortgage market, The Mortgage Lender (TML) has cut rates by up to 0.35% and reintroduced 75% loan-to-value (LTV) products for two- and five-year fixed terms. These new offerings cover standard buy-to-let properties, HMOs (houses in multiple occupation), and multi-unit blocks, broadening financing options at attractive LTV levels.

Conversely, Kensington has withdrawn several fixed-fee buy-to-let mortgage products, particularly those with £1,499 and £1,999 fees, and increased rates on some core and prime buy-to-let products, especially at 75% LTV. Leeds Building Society has also entered the market with new residential fixed-rate mortgages, although these are less relevant for buy-to-let landlords.

Why Does This Matter to You?

For landlords, mortgage costs and product availability directly impact portfolio profitability, cash flow, and long-term strategy. TML’s rate reductions and 75% LTV reintroductions create opportunities to reduce borrowing costs or increase leverage more affordably. This is especially relevant for landlords looking to refinance or expand.

However, Kensington’s withdrawals and rate hikes mean some landlords must reassess existing or planned mortgages, particularly if they were counting on fixed-fee products that no longer exist. These changes could affect affordability calculations and rental yield margins.

Practical Implications by Landlord Profile

• Single-Unit Landlords: Those nearing remortgage dates should check if TML’s new lower rates and 75% LTV options offer better terms than their current deals. Kensington’s withdrawal of fixed-fee products may mean higher upfront costs elsewhere.

• HMO and Multi-Unit Block Owners: TML’s reintroduced 75% LTV products for these property types provide renewed financing flexibility, often challenging to secure at higher LTVs. This can facilitate portfolio growth or refurbishment plans.

• Accidental Landlords: Those less familiar with market shifts should seek professional advice promptly to understand how these changes affect mortgage affordability and compliance.

• Portfolio Landlords: Larger landlords should update their financing strategy to incorporate TML’s competitive rates and monitor Kensington’s evolving product landscape to avoid unexpected cost increases.

Immediate Steps to Take

1. Review Your Current Mortgages and Upcoming Renewals: Identify which mortgages are up for renewal in the next 3-6 months and assess whether switching to TML’s lower-rate products is beneficial.

2. Update Advisory Materials and Systems: If you advise other landlords or manage mortgages professionally, ensure all internal documents and client communications reflect the latest rates and product availability.

3. Communicate With Affected Landlords: Proactively inform landlords about these mortgage market changes to manage expectations, especially if they were considering Kensington’s fixed-fee products now withdrawn.

4. Assess Affordability and Rental Yields: Recalculate mortgage costs and rental yields in light of new rates and fees, particularly if you rely on Kensington products. This helps maintain compliance with lending criteria and ensures sustainable cash flow.

5. Monitor Market Developments: Keep an eye on further lender announcements, as mortgage product landscapes can shift quickly, affecting financing options and strategy.

How Rentals & Sales Can Support You

Our team offers tailored portfolio reviews, compliance audits, and pricing strategy consultations to help you adapt to mortgage market changes effectively. We can analyse your current mortgage arrangements, identify opportunities to reduce costs with TML’s new products, and mitigate risks from Kensington’s withdrawals.

Get in touch to schedule a review and ensure your buy-to-let investments remain competitive and compliant.

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.