Buy-to-let lender Landbay has rolled out rate reductions and launched new holiday-let MUFB products, signalling fresh choice for portfolio owners this week as refinancing volumes remain high. The price cuts and flexible overpayment options arrive as landlords seek sharper deals to sustain yields into 2026.
Specialist finance options expand as lenders court active investors
Landbay has trimmed up to 10 basis points from selected two- and five-year Premier fixed products – designed for borrowers with up to 15 rental homes – offering pricing from 4.04% to 4.84%, depending on fee structure. These are eligible for remortgages, like-for-likes and product transfers up to 75% LTV.
The move arrives as more than £5bn of landlord loans reach expiry each month into early 2026, according to UK Finance, concentrating attention on availability and stress test mechanics.
An adviser at a Leeds brokerage noted that “even modest pricing tweaks can rescue affordability for leveraged clients,” especially where stress calculation shifts materially change borrowing limits.
Landbay’s new Specialist Holiday Let Small MUFB range – priced between 4.39% and 5.89% – comes amid buoyant short-stay returns. VisitEngland figures suggest holiday-let occupancy in the South West is 18% higher on average than 2022, driving lenders to offer tailored financing for diversified yields.
Landlord mortgage strategy pivots toward flexibility and fee structures
Perhaps the most notable tweak is Landbay’s 5% overpayment allowance, enabling borrowers to reduce capital without penalty. Investors with strong rental surpluses – particularly in regions where rents are still climbing – may find the tool attractive.
Research for the NRLA earlier this year found that just over a quarter of landlords planned to remortgage within the next 12 months, while separate polling from Landbay suggested 44% of landlords intend to buy additional property over the same period.
Rob Stanton, Landbay’s Sales and Distribution Director, said the lender’s focus is on keeping “rates and criteria sharp… at a time when post-Budget certainty means landlords are more likely to be active.”
Market watchers suggest fee-led pricing structures – including 5% upfront in exchange for lower interest – are gaining traction among company-structured landlords modelling long-term returns, especially where rental stress calculations tighten at renewal.
Housing market outlook nudges investors toward specialist MUFB and short-stay assets
Holiday-let ownership continues to grow, particularly in Devon, Cornwall and parts of Cumbria, where agents report short-stay yields up to 25% higher than standard AST lets. Small MUFB setups help smooth seasonal lulls, and lenders are reacting accordingly.
Some buy-to-let portfolio holders argue that the wider availability of specialist refinancing may offset squeezed profitability in traditional lettings, where compliance pressures – such as licensing and energy standards – remain acute.
If gilt rates soften further into mid-2026 and swap pricing falls, commentators expect broader repricing among specialist lenders. That could support acquisitions in higher-yield regions and revive stalled pipeline activity for those diversifying stock.
Editor’s view
Landbay’s latest tweak reads like a quiet repositioning: not headline-grabbing cuts but incremental moves designed to tempt still-selective borrowers. For seasoned investors, the widened MUFB and holiday-let toolkit is perhaps the bigger signal. The open question is whether 2026 brings enough confidence for lenders to chase volume more aggressively – or if caution remains the ruling mood.
Author: Editorial team – UK landlord & buy-to-let news, policy, and finance.
Published: 9 December 2025
Sources: Landbay; UK Finance refinancing volumes; VisitEngland occupancy statistics; NRLA landlord activity survey; regional agent market commentary.
Related reading: Buy-to-let mortgage limits raised as Paragon boosts support for landlords
