Pepper Money has upgraded its buy-to-let product range with rate cuts of up to 25bps and newly expanded HMO eligibility, giving landlords improved access to finance at a time when affordability pressures remain acute across the sector.
Specialist finance for landlords as rates fall
The specialist lender has reduced pricing by up to 25 basis points on two-year fixes and up to 15 basis points on five-year fixes, sharpening its proposition for both individual landlords and limited companies. The new headline rate now starts at 4.44% up to 70% LTV, paired with a 7% completion fee.
These changes follow Pepper Money’s 2025 return to the buy-to-let market, where it relaunched a more flexible lending suite built around inclusive affordability assessments and faster underwriting. As before, the lender uses ICR-based affordability, avoiding the need to scrutinise landlords’ personal income or bank statements. Rental valuations continue to be carried out by independent RICS surveyors.
For landlords still contending with higher remortgage costs, today’s cuts mark one of the more notable downward adjustments within the specialist lending space.
Expanded HMO criteria brings EPC D-E into scope
In a move likely to broaden appeal among portfolio landlords, Pepper Money will now accept HMOs with EPC ratings of D or E, having previously restricted eligibility to A-C.
The shift aligns with market sentiment that overly rigid EPC rules risk excluding viable stock from refinancing. By opening up criteria, the lender is positioning itself as a pragmatic player while the sector awaits clarity on future energy efficiency legislation.
HMO demand has continued to strengthen in regions such as the Midlands and North West, where universities and growing town centres underpin steady occupancy. Brokers say the expanded criteria should help unlock new opportunities for landlords seeking to upgrade or restructure portfolios containing older housing stock.
BTL proposition strengthened ahead of regulatory change
Paul Adams, Sales Director at Pepper Money, said the enhancements underline its long-term strategy:
“These latest enhancements demonstrate our ongoing commitment to supporting landlords in a challenging market. By reducing rates across key buy-to-let products and broadening our HMO criteria, we’re responding directly to broker feedback and the needs of landlords who are navigating higher costs and evolving regulation.”
He added:
“We remain focused on delivering specialist lending products that prioritise real-world affordability and speed, while continuing to build out our buy-to-let proposition. This is another step in strengthening our offering for brokers and their landlord customers, with further enhancements planned.”
For landlords comparing specialist options, the blend of lower pricing, wider HMO eligibility and consistent ICR-based underwriting may appeal, particularly ahead of expected 2026 regulatory tightening.
Editor’s view
Pepper Money’s move reflects a wider trend: lenders are repositioning early to capture landlord demand before spring remortgaging begins in earnest. By loosening EPC constraints and trimming rates, Pepper Money is signalling confidence that specialist BTL appetite will remain strong through 2026. The bigger test will be whether mainstream lenders follow suit – and whether policymakers recognise that stable lending criteria are essential if they want to keep rental supply afloat.
Author: Editorial team – UK landlord & buy-to-let news, policy, and finance.
Published: 7 January 2026
Sources: Pepper Money press release; RICS valuation guidance; market commentary.
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