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The buy-to-let sector continues to move quickly as borrowers look to take advantage of the competitive rates on offer, and lenders’ appetites steadily grow.

It is still a team effort, with brokers relying on lenders to fulfil their clients’ expectations and vice versa.

However, with pressure continuing amid the corona-virus pandemic, problems and frustrations inevitably occur, as the first of 2021’s BTL lender scores and panel comments reveal.

Godiva Mortgages (Coventry BS)

Once again Godiva proves to be a hit, taking top place this year, with its ‘no early repayment charge’ fixed rates collectively winning praise from the panel.

“Coventry consistently offers excellent rates, with no minimum income requirement, reduced interest cover ratio for lower-rate taxpayers, a stress rate of 4.5 per cent on its five-year fixed rates and a very fast time to offer,” says Largemortgageloans.com associate director Matthew Hillyer. Its manual underwriting also allows it to take a “common sense” approach to cases, he adds.

Trinity Financial product and communications manager Aaron Strutt applauds Coventry’s broker support teams.

“Our BDM has the power to pull a few strings when needed,” he says. “And rates and acceptance criteria are still very good.”

One Savings Bank

The combined forces of the OSB brands have seen it gain ground.

“Looking at OSB as a collective, all three companies in their own right have good systems and are liked as reliable lenders; and all have easy-to-navigate systems and great BDM support,” says Connect Mortgages chief executive officer Liz Syms.

Hillyer feels Kent Reliance has been “unphased by the Covid epidemic… and is unique in being able to give exceptions to policy, be it on loan size, property type or any other matter”.

He adds: “Underwriting requirements, particularly around documents, are kept to what is necessary, which is helpful when dealing with professional landlords with large portfolios and complex circumstances.”

BM Solutions

BM Solutions has fallen from the top spot since the last ratings.

“It’s a good lender, but needs to raise its game to compete with other lenders that are offering more,” says Dynamo for Intermediaries founder and chief executive Ying Tan. “Its new system is a step in the right direction,” he adds.

Online Mortgage Advisor managing director Pete Mugleston welcomes BM Solutions’ limited company offering and rates, but adds: “The only downside is it doesn’t offer agreements in principle for this — just straight to full application.”

Alexander Hall director of lender relationships and new homes Greg Cunnington says: “Its new system, combined with competitive products and some flexible ICR criteria, makes BM a key lender.”

TMW (Nationwide)

TMW remains in fourth position.

“TMW has had a strong quarter,” says London & Country associate director of communications David Hollingworth. “Free legals on limited company deals are also a welcome addition,” he adds.

Chadney Bulgin mortgage partner Jonathan Clark applauds TMW’s excellent rates, simple criteria and great service, adding: “Its relatively poor customer retention products continue to create remortgage opportunities for brokers.”

Tan says: “It’s our biggest lender with great products, but service has suffered in recent months.”

The Buy to Let Broker director Matt Hardman refers to TMW as the “rate setter” and feels its BDM support has improved massively over the past 12 months.

However, he adds: “It currently offers no products for HMO, which is disappointing — but for those vanilla cases with straightforward structures it is fantastic.”

Virgin Money

Virgin has climbed two places this time.

“Virgin is currently up there with the best of them,” says Hardman. “Its products and criteria are both competitive and, if it agrees something out of policy, it always sticks to it. BDM support has also been great.”

Hollingworth applauds Virgin’s great rates and suite of incentives. He says: “Great service on top adds up to a strong showing.”

Syms describes Virgin as a “popular” lender with good products, but adds: “Limitations with its system can cause challenges.”

Hillyer welcomes the lender’s 80 per cent LTV offering, but says: “Due to its restrictive top-slicing criteria, it’s not going to work for anything but high-yielding properties.”

Santander UK

Santander, meanwhile, has dropped three places.

“It’s not as quick as it could be, but there are still many reasons to use Santander,” says Hardman, “not least its no-nonsense approach to property types and leaving it all to valuer comments, which can be a winner with flats above commercial and studios.”

Tan adds: “It has good products, but there’s still room for improvement in its service.”

Cunnington says the lender’s “like-for-like remortgage and five-year fixed-rate ICR criteria” make it a favourite.

Strutt says: “Our brokers have been really impressed with Santander’s BDM and the effort he puts in to resolve any issues. He also works hard to get our complex cases through.”

Paragon

Paragon has climbed an impressive three places.

“It’s a superb first-line lender, which has possibly lost a little of its shine during the pandemic,” says Hardman. “Paragon often proves most cost-effective on the limited company/HMO deals.”

He applauds its fantastic BDM and underwriter team, which he says will take a view on quality cases with the odd quirk.

Hillyer welcomes Paragon’s five-year fixed rates for the specialist/portfolio/professional landlord, but he says: “It was one of the few BTL lenders in the 80 per cent LTV space pre-Covid and it’s a shame it has not yet re-entered.”

Tan adds: “Despite some good products, confidence is affected by how often faults are found at application stage.”

Barclays

Barclays has gained one place, yet its service still causes issues.

“Barclays is pretty much setting the standard for terrible service,” says Mugleston. “Its systems are flaky and nothing seems to improve over time with bug fixes.”

This is a shame, he says, because the lender often beats others on affordability, as well as being good with ex-council flats and other unusual properties.

Syms welcomes Barclays’ BDM support and good product range but, again, says: “Processing is not the fastest and sometimes is inconsistent.”

Clark, however, says: “Barclays’ combination of excellent rates and a simple top-slicing calculator makes it a great choice for higher-net-worth clients.”

NatWest Intermediary Solutions

NatWest has fallen one place, but is gaining fans on the panel.

“It’s not as established in the BTL market as some of its specialist competitors, but it’s still pretty good,” says Mugleston.

He welcomes its like-for-like adverse criteria for BTL and residential cases, plus its “common sense” around minimum income and affordability.

Cunnington calls NatWest an “improving” BTL lender and says “its top-slicing calculation is really helping”.

Clark feels the lender has got to grips with its “variable” service and “sharpened” its rates in an effort to attract more business.

Strutt praises NatWest’s large-loan offering.

Leeds Building Society

Leeds is a new entrant in our ratings chart.

“Leeds may offer a more limited range of products than some, but often prices very competitively,” says Hollingworth.

Mugleston describes it overall as a “good” specialist lender, but says that it is “not the greatest regarding affordability”.

He adds: “Its system isn’t perfect and can be more paperwork heavy than most, but once over that it tends to underwrite more quickly than some of its competitors.”

Hillyer feels Leeds’ rates and fees are competitive, but he questions why it caps general BTL lending at £500,000 despite going up to £750,000 for HMOs.

He adds: “It does not seem to handle complex underwriting cases well — progress can be slow.”