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  • 5 November 2025

Steve Cox
Chief Commercial Officer

When lenders can’t lend more: the hidden restrictions shaping BTL finance

Originally published by Mortgage Introducer

UK brokers working in the buy-to-let market are navigating a period of recalibration. While affordability pressures have eased slightly, new regulatory risks, evolving product strategies, and a more competitive lending landscape are redefining what it means to support landlord clients.

“Affordability has improved compared to where we were post-mini budget,” said Steve Cox, Chief Commercial Officer at Fleet Mortgages. “Five-year fixed rates falling back to around five percent has removed some of the earlier stress points.”

Funding structure now a frontline issue

One area many landlords overlook, but brokers increasingly cannot, is how lenders’ funding models affect refinancing options.

“Some lenders, particularly those funded through capital markets, may be unable to offer further advances because the debt has been securitised,” Cox explained. “It’s not that they don’t want to, it’s just structurally not possible.”

According to Cox, brokers are uniquely placed to surface this hidden detail, especially when working with portfolio landlords whose refinance strategies may depend on lender flexibility.

Geographic and asset diversification on the rise

As landlords look to balance yield and risk, there is clear evidence of a shift in asset type and location. Portfolio landlords are increasingly stepping outside their traditional markets.

“We’re seeing landlords who previously focused on London exploring properties in university towns in the Midlands and North,” Cox said. “It’s often their first time working with HMOs or multi-unit blocks, where the yield story is stronger.”

This change in behaviour is pushing brokers to re-familiarise themselves with less conventional lending criteria, as well as the additional management and cost implications these asset types carry.

Changing product strategies as market stabilises

Affordability stress is no longer the defining constraint it was in 2023, but the rate environment still shapes how brokers approach product selection. Two-year fixes are regaining popularity alongside five-year deals, reflecting a blend of rate speculation and cash flow management.

“Some landlords are hoping that money will be cheaper in two years, so they opt for the shorter term,” said Cox. “Others prefer to lock in now on a five-year to remove risk. It really depends on the strategy and how the landlord views the market.”

Product transfers, too, have grown in relevance. Once a marginal part of the buy-to-let space, they are now a viable tool for managing affordability without incurring remortgage fees or changing lenders.

Broker role shifting from transaction to strategic advice

Cox believes brokers who succeed over the next 24 months will be those who understand and can explain the implications of changing legislation, energy standards, and lender behaviour—not just source the best rate.

“Brokers should be helping landlords anticipate what regulatory shifts like MEES might mean for them, and how to finance necessary changes across their portfolios,” he said.

That might include identifying lenders who can support further borrowing, or revisiting existing deals to unlock equity before new rules make upgrades mandatory.

“These aren’t conversations landlords will typically have without being prompted,” Cox said. “Brokers are increasingly the only ones positioned to initiate them.”

In a market defined by policy flux and structural change, brokers who act as portfolio strategists and regulatory interpreters will be key to navigating the buy-to-let landscape ahead.

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