Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

ModaMortgages Drops BTL Application Fees; Darlington BS Eases BTL Packaging

ModaMortgages has removed application fees on its limited-edition two- and five-year fixed buy-to-let (BTL) products. Darlington Building Society has also simplified its BTL packaging process by reducing documentation requirements for applicants.

ModaMortgages’ decision to scrap application fees follows its recent rate reductions across its BTL range, with two-year fixed rates starting from 3.34% and five-year fixes from 4.94%. The lender continues to offer free valuations on its BTL products, including those for houses in multiple occupation (HMOs) and multi-unit freehold block (MUFB) properties. These offers are available to both individual and limited company landlords.

Darlington Building Society has responded to adviser feedback by streamlining its BTL application process. Employed applicants are now required to provide only their latest payslip, instead of two months’ payslips. For BTL applications where the required interest coverage ratio (ICR) is met, income evidence is no longer required as standard. These changes also apply to expat BTL cases involving self-employed applicants, which previously required account verification. However, underwriters retain the discretion to request additional evidence in more complex cases, such as those involving top-slicing.

Darlington’s two- and five-year fixed rates now start from 5.89% with a £999 fee at 90% loan to value (LTV), and the fee can be added to the loan.

These updates from both lenders are relevant for UK letting agents and inventory clerks, as they may impact the speed and ease of arranging BTL mortgages for landlords and property investors.