Suffolk Building Society has announced rate cuts across its buy-to-let and holiday let mortgage products.
A spokesperson for the society acknowledged the ongoing financial strain many landlords have been under. They pointed to recent challenges such as changes in tax policy and the rise in interest rates, which have made borrowing more difficult for property investors.
One particular hurdle has been meeting the Interest Coverage Ratio (ICR) stress testing requirements. This has limited how much many landlords are able to borrow.
To help address this, Suffolk is lowering rates on its popular two-year fixed buy-to-let and holiday let deals. The aim is to make borrowing more accessible without forcing landlords into longer five-year fixed terms.
The society recognises the important role landlords play in the housing market. This includes those with standard buy-to-let properties, holiday lets, and even expat landlords investing in UK property.
Suffolk Building Society has announced a series of rate reductions across its buy-to-let and holiday let mortgage products, including those designed for expat borrowers. These changes reflect the society’s ongoing commitment to supporting landlords, especially during a period of financial uncertainty and rising costs in the rental sector.
According to a spokesperson from Suffolk Building Society, expat buy-to-let lending is now their second largest lending segment. The society attributes its popularity among expat clients to its flexible lending criteria and hands-on approach to underwriting. Manual underwriting enables them to assess applications on a case-by-case basis, which is particularly important for expats with more complex financial situations.
The lender has expressed a strong desire to continue supporting brokers who assist clients within the expat market. They acknowledge that brokers often face a delicate balancing act—finding suitable mortgage products for clients who do not always fit the standard criteria. The rate cuts aim to make that process a little easier, by increasing borrowing potential while maintaining competitive terms.
The newly adjusted mortgage rates will apply to both purchases and remortgages, and are available starting Tuesday, 6 May 2025. These changes affect a range of two-year fixed products at up to 80% loan-to-value (LTV), and are valid until 31 August 2027.
Here is a summary of the updated rates:
- The 80% LTV Expat Buy-to-Let two-year fixed (capital and interest) has been reduced by 11 basis points, now at 5.59%, previously 5.70%.
- The 80% LTV Buy-to-Let two-year fixed (capital and interest) is now available at 5.45%, down from 5.55%.
- For landlords carrying out light refurbishments, the 80% LTV Buy-to-Let Light Refurb two-year fixed (capital and interest) has also dropped by 10 basis points, now at 5.55%.
- Holiday let borrowers can also benefit, with the 80% LTV Holiday Let two-year fixed (capital and interest) falling to 5.45%, from the previous rate of 5.55%.
- Finally, the 80% LTV Expat Holiday Let two-year fixed remains at 5.89%, though the end date has been extended to 31 August 2027.
These reductions follow earlier efforts by the society to ease affordability challenges for landlords, many of whom have been struggling to meet the rising costs of borrowing due to stricter stress tests and interest coverage ratio (ICR) calculations.
Suffolk Building Society’s recent updates reflect a broader recognition of the vital role landlords—both domestic and overseas—play in the UK’s housing sector. By offering improved mortgage terms without requiring borrowers to commit to longer five-year fixes, the society is helping to give landlords more flexibility and financial breathing room.
Overall, these changes represent a proactive step towards supporting landlords who may have been discouraged by recent market pressures. Whether for expat investors, holiday lets, or light refurbishment projects, the new mortgage rates offer more accessible and affordable options across the board.
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