Coventry Building Society has updated its buy-to-let lending policy, introducing key changes that give landlords more flexibility and borrowing power. The latest adjustments are poised to help property investors expand and manage their portfolios more effectively, reinforcing the lender’s involvement in the UK rental market. In this article I will go through the updated criteria from Coventry and also offer a little insight from the mortgage broker side of the table. If you are reading this as a landlord considering a Coventry buy-to-let mortgage or any other kind of mortgage, then please feel free to get in touch with our advisors at Oportfolio Mortgages.
Key Updates to Coventry Buy-to-Let Mortgage Policy
The latest policy updates for Coventry Building Society’s buy-to-let lending include:
- Increased Maximum Lending Exposure: The maximum amount a landlord can borrow has been raised from £2 million to £2.5 million, enabling greater investment potential.
- Expanded Property Holdings: Landlords are now permitted to hold up to seven rental properties with Coventry Building Society, an increase from the previous limit of five.
- Enhanced Portfolio Size: The total number of mortgaged rental properties a client can hold in their portfolio has been increased from 10 to 15, offering more room for portfolio growth.
These changes are particularly significant and noteworthy for any landlord reading this article as these adjustments are designed to provide landlords with increased borrowing capacity and the opportunity to diversify their property investments and increase their portfolio investment scale.
Developments in the UK Buy-to-Let Market
The buy-to-let sector has witnessed notable trends and changes recently, and Coventry Building Society has played a big part in making these changes. Back in 2024, Coventry revised its buy-to-let affordability criteria by lowering reference rates across various fixed-rate periods. This move aimed to improve affordability for landlords, allowing them to potentially borrow more against their rental income. For instance, a basic rate taxpayer with a rental income of £900 opting for a five-year fixed rate could now borrow up to £181,895, an increase from the previous £157,091, all within a 75% loan-to-value limit.
However, the proportion of mortgage loans to first-time buyers in the UK reached a record high in the last quarter of 2024, accounting for 29.6% of all mortgage lending. This shift is attributed to the increasing affordability of purchasing over renting and a reduction in landlord participation in the market. The buy-to-let sector represented 8.2% of lending during this period, slightly up from 7% at the end of 2023.
Buy-To-Let Mortgage Expert Insights
Louis Mason, Marketing and Communications Director at Oportfolio Mortgages, commented on Coventry Building Society’s recent policy enhancements:
“Coventry’s proactive approach in revising their buy-to-let lending criteria is a testament to their dedication to supporting landlords. These changes not only offer increased financial flexibility but also demonstrate an understanding of the evolving needs within the property investment landscape. It’s encouraging to see such initiatives that empower landlords to expand and manage their portfolios more effectively. As buy-to-let specialist mortgage brokers, a large amount of our clients are experienced landlords, and I know that these changes will really benefit a lot of them!”
Speak To A Buy-To-Let Mortgage Expert
The buy-to-let market is getting more and more difficult to enter and stay in, influenced by regulatory changes, economic factors, and shifting investor strategies. The rise in landlords establishing limited companies to manage their properties, driven by tax efficiencies and regulatory considerations, really highlights the importance of working with a specialist buy-to-let mortgage broker, now more than ever.
At Oportfolio Mortgages, our team of buy-to-let specialist mortgage advisors is dedicated to guiding you through the complexities of the market, ensuring you make informed decisions that align with your investment goals. Call us or drop us a message today to arrange a fee free initial mortgage consultation. We are here to help.
