Nottingham Building Society has launched a new range of BTL products in response to changes in the Autumn Budget that will see landlords pay more tax.
Last week, chancellor Rachel Reeves confirmed that landlords will have to pay a 2% rise in property income tax from April 2027.
The building society’s new range introduces lower-rate, higher-fee options — including a headline rate of 4.48% for company landlords, reduced from 4.99% — which are designed to give landlords greater flexibility to manage their outgoings at a time when rising tax burdens are compressing rental yields.
Nottingham Building Society is also preparing to launch a similar suite of products for landlords borrowing in their personal name this Friday (5th December), with rates starting from 4.24%.
These changes also mean landlords will require 10% less rental income to meet affordability if they pay the fee upfront, and 6% less if they choose to add the fee to the loan — helping to offset the impact of upcoming tax changes.
Matt Kingston, sales director at Nottingham Building Society, said the new range was about easing the pressure put upon landlords.
“By giving landlords more choice, lower monthly payments and greater flexibility, we’re helping them stay financially resilient at a time when margins are tighter than ever,” said Matt.
“We support a balanced market where renting is fair and buying is achievable.
“That means backing sustainable, quality rental provision and ensuring long-term renters still have a runway toward homeownership if they want it.”
