In addition to higher taxation and increased regulation, landlords are contending with bigger mortgage costs. With both landlords’ and lenders’ margins being squeezed, brokers are feeling the strain.

Which lenders are coming to their aid, and which are adding to the frustrations? Mortgage Strategy’s latest buy-to-let (BTL) ratings reveal all.

Accord Mortgages (Wild card)

In a lender ratings first, our Wild Card has claimed the top spot.

“Accord has a market-leading sales and business development manager [BDM] team,” says LDNfinance chief operating officer Greg Cunnington. “A raft of policy improvements this year have made it a more serious BTL lender.”

Impact Specialist Finance managing director Dale Jannels is a fan of Accord’s “superb online product transfer system”.

Accord has a market-leading sales and BDM team. A raft of improvements this year have made it a more serious BTL lender

Alexander Hall technical adviser Stephanie Daley says the lender offers “fantastic BDM support and a great option for landlords on a visa”. However, JLM Mortgage Services group director Sebastian Murphy finds its proposition can be “limited” and “hard to fit”, with no limited company options.

Santander For Intermediaries

Santander jumped two places to second spot in the ratings.

“Simple to use and case updates are superb,” states Jannels.

Just Mortgages senior mortgage and protection adviser Matt Tilbury says: “Good affordability makes it one to look at.”

The Buy To Let Broker specialist for buy-to-let and residential Steve Walker calls Santander’s “extremely generous” like-for-like rental stress test a “big bonus” for brokers who struggled to place low-yielding cases without a capital-raising element.

Simple to use and case updates are superb

He adds, however: “This has now been amended to match the rest of the vanilla BTL market, which will likely see a reduction in business.”

Godiva Mortgages

It’s a drop from the top spot to third for Godiva.

“There may have been some IT issues but overall Godiva’s performance has been good,” says London & Country director of communications David Hollingworth.

He adds: “Competitively priced and clocking strong service figures are what it is all about, and consistency carries real value in a volatile market.”

There may have been some IT issues but overall Godiva’s performance has been good

Largemortgageloans.com associate director Mark Pattanshetti, meanwhile, praises the lender’s “efficient submission process and straightforward lending criteria”.

BM Solutions

BM Solutions fell one place to fourth. Vincent Burch Mortgage Services mortgage director Vincent Burch says the lender can be hard to use for portfolio clients, but is “otherwise very quick”.

He awaits the launch of its limited company products.

Trinity Financial product and communications manager Aaron Strutt welcomes BM Solutions’ updated product transfer system.

Background rental stress tests could be more lenient

“Our brokers like it,” he says, and Pattanshetti adds: “It’s one of the lowest priced, and has efficient underwriting with a free conveyancing proposition.”

Walker describes the lender as his first port of call for five-bedroom houses in multiple occupation (HMOs) on a single tenancy agreement, but adds: “Its background rental stress tests could be more lenient.”

Barclays

It’s an impressive climb of three places for Barclays but opinion is divided.

“Great support with top slicing — very good overall,” says Tilbury, while Cunnington, also a fan of Barclays’ top-slicing policy, adds: “It is a key BTL lender for the London and Southeast market.”

Daley agrees and believes its affordability model sets it apart, but Strutt says, due to Barclays’ insistence on more background property information for top slicing, it can be “harder to get deals through”.

A key BTL lender for the London and Southeast market

Burch echoes this, saying Barclays is “consistently the hardest lender to work with”.

The Mortgage Works (Nationwide)

TMW remains in sixth place in our table.

“It has streamlined underwriting and consistent service levels,” says Pattanshetti. “Broker support is mainly via online chat, which is very comprehensive.”

Daley likes TMW’s “great” product range and “solid” proposition, adding: “Its limited company products are often market leading. If it offered agreements in principle for this, it would be even better.”

Great to see its positive improvement on new-build property maximum LTVs

Cunnington calls the lender “one of the best” for limited company BTL.

“Great to see its positive improvement on new-build property maximum LTVs,” he adds.

Burch says TMW’s service has improved, but observes: “You cannot call for an update in the first 10 days.”

NatWest Intermediary Solutions

It’s a big drop of five places for NatWest.

“Easy policies, good calculator but slow processing,” is Tilbury’s summing-up.

Walker feels, although the lender is generally one of the cheapest, its lack of support from a field-based BDM is an issue.

“Live chat is often inundated, waiting longer than 30 minutes is not unusual, and its calculator for portfolio landlords is often harsher than those of competitors,” he says.

Easy policies, good calculator but slow processing

Cunnington, however, says NatWest’s updated interest cover ratio requirements for five-year fixed-rate and like-for-like remortgages have seen it become a “more regularly used and important lender”, and Jannels finds its phone BDMs are “very good and get things done”.

Precise Mortgages

Precise has jumped one place and Tilbury says: “Its niche policies make it invaluable.”

Pattanshetti praises “good products, an easy-to-use online submission process and an excellent telephone support team”.

Hollingworth welcomes the “broad specialist offering” and Jannels says Precise is “very good” in the near-prime space, adding: “It will become more prominent as more issues with client profiles occur.”

An easy-to-use online submission process and an excellent telephone support team

Walker says, although Precise is one of the more cost-effective lenders, it is effectively “a vanilla lender in the specialist space”. He believes the facility to triage cases that contravene criteria through to Kent Reliance or Interbay hinders Precise’s incentive to be flexible.

Paragon

Paragon is in ninth spot, falling by two places, but Walker says: “Its cost-effective rates, free valuations and BDM/underwriter support make it an attractive proposition for complex BTL clients.

“Most of my large multi-unit freehold blocks and HMOs were submitted to Paragon. It offered the best rate and service, as well as an option to refer to an internal valuer pre-application. However, it can be a little property sensitive in some instances.”

It has a tendency to over-underwrite

Murphy says: “Advisers should get the application sense checked by the BDM first. Processing is still far too slow and it has a tendency to over-underwrite.

“Nevertheless, it’s still the best specialist lender in this space.”

Leeds Building Society

Leeds is a non-mover near the bottom but still earns praise.

“A strong year for Leeds, which has maintained good service,” says Hollingworth. “Products are often right up there or topping the tables.”

Murphy calls Leeds “a lender with competitive rates but limited products”, while Walker says: “A competitive HMO range, specifically smaller HMOs below six occupants with free valuations.

Products are often right up there or topping the tables

“No minimum income is useful but it does require earned income, which can be restrictive to full-time landlords.”

Virgin Money

Virgin has tumbled six places down the table and Tilbury says: “New systems are needed to improve its proposition.”

Burch bemoans “over an hour on the phone trying to make contact”, and Murphy says: “Great BDM and management team but let down by slow service at times.”

New systems are needed to improve its proposition

Hollingworth welcomes Virgin’s 80% LTV offering and good incentives, adding: “Maintains a position in the long-term fixed-rate market, which may be an area landlords have a closer eye on.”