The State Bank of India (UK) Limited has unveiled a sweeping set of interest rate cuts across its buy-to-let mortgage products, offering UK landlords a much-needed financial boost at a time of rising costs and economic uncertainty. The lender’s refreshed offering, announced in July 2025, includes significant reductions across standard, SPV, HMO, and MUFB products — with some rates falling by as much as 90 basis points.
This move from SBI UK, one of the few lenders actively expanding its support for landlords, comes as many property investors look to refinance or scale their portfolios amid sustained demand in the private rented sector.
Abhishek Sahay, Chief Business Officer at SBI UK, said: “Our refreshed Buy-to-Let product range reflects our dedication to supporting landlords through more attractive lending solutions… We recognise the crucial role landlords play in the UK housing ecosystem, and these rate reductions are designed to help them thrive in a dynamic market.”
Deep cuts to HMO and SPV rates
Among the standout changes, the bank has cut HMO rates by up to 90 basis points on 2-year fixes and 50 basis points on 5-year terms. For landlords managing non-green properties, the 5-year fixed-rate is now set at 5.15%, with green homes receiving a further 10bps discount. Fees have also been trimmed to 1.50% for 50% and 65% LTV brackets — good news for landlords focused on sustainability and cashflow alike.
The SPV product range has seen rate reductions of up to 40bps, with a flat fee now introduced on larger loans for limited companies. This streamlines the lending process for portfolio landlords using special purpose vehicles — a common structure for tax efficiency.
Pricing on multi-unit freehold blocks (MUFBs) has also been adjusted to align with HMO offerings, providing consistency across specialist buy-to-let products.
Sahay added: “We understand the importance of service standards and have added capacity to our underwriting team to process applications in a timely manner.” This commitment to faster turnaround times may prove critical for landlords navigating tight completion windows or mortgage expiry deadlines.
Green discounts and flexible fees
Beyond competitive pricing, SBI UK’s latest update reflects a growing emphasis on energy efficiency. By offering an extra 10 basis point discount on green properties, the bank is actively encouraging landlords to invest in energy-saving improvements — a priority as EPC legislation looms on the horizon.
But it’s not just the environment benefitting. With inflationary pressures still weighing heavily on mortgage holders and a subdued but stable housing market, landlords refinancing in 2025 face a fine balance between cost and compliance. Tailored products like these — particularly for HMOs and limited companies — are becoming increasingly essential.
One Birmingham-based landlord who manages three HMOs told us: “Lenders have been cautious lately, especially on HMOs, so this move by SBI UK is a breath of fresh air. I’ve just locked in a 5-year fix at a better rate than I thought possible — and the fee was lower than I’d budgeted for.”
Strategic lending cuts
While many lenders remain cautious or restrict lending criteria, SBI UK’s rate reductions stand out as a proactive step to support landlords during a time of transition. With inflation softening and the Bank of England expected to cut the base rate in the coming months, borrowing conditions are gradually improving — and this latest update places SBI UK firmly ahead of the curve.
For landlords juggling refinancing deadlines, EPC upgrades, or acquisition plans, this isn’t just a rate cut — it’s a signal that some lenders still believe in the sector’s future.
As Sahay concluded: “Our ongoing commitment to green lending highlights our focus on sustainability and reducing the carbon footprint of the housing sector.”
In a market where product choice has narrowed and risk appetite has shrunk, this timely and landlord-friendly revamp from SBI UK could help keep investment activity moving — and ensure more high-quality rental homes remain available across the country.
