"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"
- Paul Adams - Pepper Money
Pepper Money has announced that it has reduced buy-to-let rates and expanded its HMO criteria, aiming to improve affordability for landlords and increase options for brokers placing complex cases.
The specialist lender has applied rate reductions of up to 25bps on two-year fixed products and up to 15bps on five-year fixed products across its buy-to-let range. At the same time, it has broadened eligibility for houses in multiple occupation by accepting properties with EPC ratings of D or E, moving beyond its previous A to C requirement.
Pepper Money has also introduced new headline pricing, with its lowest two- and five-year fixed rates now starting from 4.44% up to 70% LTV. These products come with a 7% completion fee and are available to both individual landlords and limited company borrowers.
The changes build on the lender’s return to the buy-to-let market during 2025, when it relaunched a range focused on flexibility and inclusive affordability. As with the wider buy-to-let proposition, Pepper Money continues to assess affordability using interest coverage ratios rather than personal income or bank statements, with rental income verified by an independent RICS surveyor.
Expanded HMO criteria form a central part of the update:
- properties with EPC ratings of D or E are now eligible
- two- and five-year fixed rates have been reduced across the range
pricing starts from 4.44% up to 70% LTV with a 7% fee
“These latest enhancements demonstrate our ongoing commitment to supporting landlords in a challenging market,” said Paul Adams, sales director at Pepper Money (pictured). “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."
“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,” he added. “This is another step in strengthening our offering for brokers and their landlord customers, with further enhancements planned.”
