Elsewhere, Pepper Money has made improvements to its own buy-to-let range, including rate reductions across two and five-year fixed products and expanded criteria for Houses in Multiple Occupation (HMOs).

The Darlington’s criteria change follows the society’s entry into the limited company market in November last year. The Darlington said it has seen growing demand from landlords to place their investment properties in a special purpose vehicle.

Darlington’s limited company buy-to-let range includes a two-year fixed rate at 5.29% and a five-year fixed rate at 5.39%, both with a £999 product fee plus valuation fee.

These products can be used for purchase or remortgage and are available to first-time buyers and first-time landlords, with no minimum income or ownership period.

The loans can also be used for holiday let properties and applications have a non-restricted solicitor panel.

Darlington Building Society head of intermediary distribution Chris Blewitt said: “Limited company buy-to-let is not new, but the needs of these borrowers have shifted. In the past it was largely the space of specialist lenders working with portfolio landlords. We are now seeing more interest from those with smaller holdings and first-time buyers or first-time landlords.

“As a lender that understands individual cases and the profile behind them, we felt the market needed our support now more than ever. Raising LTV to 80% gives brokers an extra tool when helping clients structure their borrowing in a way that suits long term plans.”

Pepper Money will now support HMOs on properties with an energy performance certificate (EPC) rating of D or E, rather than its previous requirement of A-C.

The lender has also cut buy-to-let rates by up to 25bps on two-year fixed products and up to 15bps on five-year fixed products.

The lender has introduced new lowest two- and five-year fixed rates of 4.44% up to 70% LTV, with a 7% completion fee.

Affordability will still be assessed using ICRs rather than personal income or bank statements, with rental income assessed by an independent RICS surveyor.

Pepper Money sales director Paul Adams said: “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.”