Buy-to-let landlords have received another boost this spring as specialist lender Zephyr Homeloans announced a fresh round of mortgage rate reductions—its second so far this year—making borrowing more affordable across two- and five-year fixed products.
Targeted rates for eco-friendly homes and HMOs
On 10 April 2025, Zephyr confirmed that it had reduced all two-year fixed-rate products by 20 basis points and five-year products by 5 basis points. These new deals are especially attractive for properties with stronger environmental credentials, with some of the most competitive rates offered on homes boasting EPC ratings between A and C.
For example, landlords purchasing or refinancing A-C rated properties can now access rates starting from just 2.94% on a two-year fixed mortgage up to 65% loan-to-value (LTV), or 4.64% for a five-year fix at the same LTV—both carrying a 7% fee. The same rates apply to new builds and flats above commercial premises.
For more complex property types, such as HMOs and multi-unit freehold blocks (MUFBs), rates now begin at 3.09% for two-year fixes and 4.74% for five-year terms, again up to 65% LTV.
Flexibility for landlords across all EPC bands
Zephyr has also ensured landlords with lower-rated properties aren’t left behind. Homes with EPC ratings of D or E now qualify for reduced two-year fixed rates from 3.04% and five-year fixes from 4.69%, making it easier for investors to continue operating while considering future upgrades to meet energy efficiency targets.
For HMOs and MUFBs with D or E EPCs, rates now start from 3.19% (two-year fixed) and 4.79% (five-year fixed). All options come with a 7% fee, although Zephyr says borrowers also have the flexibility to choose 0% or 3% fee alternatives if needed.
More choice in a competitive mortgage market
Andrew Rowe, Head of Sales at Zephyr Homeloans, commented on the update: “We’re pleased again to be able to provide reductions for brokers to offer to their landlord customers.”
Zephyr’s decision to lower rates reflects a broader trend across the buy-to-let mortgage sector, where lenders are battling to attract professional landlords and portfolio investors. As interest rate pressures begin to ease across the market, lenders like Zephyr are seizing the opportunity to become more competitive—especially in high-demand segments like HMOs, new builds, and eco-efficient homes.
A welcome relief for property investors navigating tight margins
For landlords grappling with rising operating costs, regulatory pressures, and energy efficiency deadlines, these improved lending terms offer breathing room—and the potential to restructure portfolios more profitably. With the option to secure fixed deals under 3% in some cases, savvy investors now have stronger financial incentives to expand or refinance, especially in areas with strong rental demand.
At a time when landlords are being asked to deliver more, from higher energy standards to tenant protections, access to more competitive finance is not just helpful—it’s essential. As spring turns to summer, the spotlight is now firmly on how other lenders will respond.
