Landlords and property investors are set to benefit from Barclays’ latest mortgage policy update, which increases borrowing limits for buy-to-let, self-employed, and interest-only customers. The move marks another step by a major high street lender to support borrowers navigating tighter affordability rules and higher property prices.
Greater flexibility for buy-to-let and self-employed borrowers
Barclays has announced three major changes across its lending range. For a landlord buy-to-let mortgage, the maximum loan size on new build properties has been raised from £500,000 to £550,000 at 60–75% loan-to-value (LTV). The same increase applies to flats, with borrowing now available up to £550,000 at 70–75% LTV.
The bank also confirmed that it will now accept 100% of net profits (profit after tax) in its affordability assessments for self-employed borrowers, while lowering the minimum loan threshold for those cases. This means sole traders and small business owners — a growing share of buy-to-let investors — will be able to borrow more without being penalised for retained profits or tax write-downs.
For interest-only mortgages, Barclays has raised the maximum LTV to 75% where borrowers hold at least £500,000 in equity, offering added flexibility for experienced landlords who rely on sale of property as their repayment vehicle.
Mortgage brokers say the move will be “welcome relief for portfolio landlords”, especially as stress testing and rising fixed-rate deals have constrained expansion plans over the past two years.
Lending changes support affordability in a high-rate market
This announcement follows Barclays’ earlier adjustments to affordability modelling, which allowed families to borrow up to £30,750 more under certain conditions. The lender also increased its high LTV caps to £640,000 for houses and £310,000 for flats, making higher-value purchases possible with just a 10% deposit.
Combined, these shifts suggest a strategic effort to stimulate lending volumes at a time when many lenders have been tightening credit criteria. For landlords, improved affordability calculations could help sustain cash flow and keep rental supply stable, particularly in high-demand urban markets where yields have already been squeezed by rising costs.
Property finance advisers have noted that Barclays is one of few mainstream lenders increasing buy-to-let exposure while maintaining conservative LTV limits. This approach balances risk management with investor accessibility — key as landlords face refinancing pressures on fixed-rate deals set five years ago during ultra-low interest conditions.
Broader context for landlord finance
The move aligns with Barclays’ wider suite of home ownership initiatives. The Mortgage Boost scheme, for instance, allows family members or friends to “boost” borrowing potential without directly gifting or lending funds, broadening access for multi-generational or co-investment property purchases. Additionally, its zero-deposit mortgage for Right to Buy applicants reflects a shift toward innovative underwriting to keep property ownership achievable.
These enhancements could be particularly relevant as mortgage approvals remain subdued, with the Bank of England reporting just 59,400 new approvals in August, well below pre-pandemic averages. As affordability pressures weigh on both buyers and landlords, increased lending flexibility from major lenders may help stabilise transaction volumes heading into 2026.
Editor’s view
Barclays’ changes may look incremental, but they speak volumes about lender sentiment. With stress tests softening and self-employed criteria broadening, landlords could see renewed flexibility — a sign that mainstream banks are warming back to buy-to-let. The key question: will others follow suit before the next base rate move?
Author: Editorial team — UK landlord & buy-to-let news, policy, and finance.
Published: 6 October 2025
Sources: Barclays Bank plc (October 2025 lending policy update); UK Finance mortgage market data; Bank of England Mortgage Approvals (August 2025).
Related reading: Buy-to-let mortgage rates fall again as TMW trims limited company deals
