Specialist lender Pepper Money has reduced rates by 0.50% across its buy-to-let range, with the lowest five-year fixed rate now at 3.94%.

The cuts apply across two- and five-year fixed terms at 70%, 75% and 80% loan-to-value, covering both standard buy-to-let and HMO products.

Rate reductions across the board

The headline rate of 3.94% is available on the Pepper 48 Light five-year fixed product at 70% LTV. The same product at 75% LTV now starts at 4.09%, while the 80% LTV option is priced at 4.84%.

Pepper 36 Light products have also seen matching reductions. The five-year fixed rate at 70% LTV now stands at 4.14%, rising to 4.29% at 75% LTV and 4.99% at 80% LTV.

HMO products within both ranges have been reduced by 0.50% at 70% and 75% LTV. The Pepper 48 Light HMO five-year fixed at 70% LTV is now available at 4.14%, while the Pepper 36 Light HMO equivalent sits at 4.34%.

The cuts come as competition among buy-to-let lenders intensifies ahead of a major refinancing wave. Recent UK Finance data highlighted nearly £50 billion in buy-to-let mortgages due to mature in 2026.

Remortgage incentives

Pepper Money said its buy-to-let range is positioned around supporting landlords reviewing existing borrowing arrangements. All single dwelling buy-to-let remortgages come with £350 cashback as standard.

Free valuations remain available on selected products for properties valued up to £500,000.

The lender joins several specialist providers who have cut rates in recent weeks as the market anticipates a Bank of England base rate reduction in March. Yesterday’s inflation data showed CPI falling to 3.0%, strengthening expectations of further monetary easing.

Key rates following changes

• Pepper 48 Light 5yr fixed 70% LTV: 3.94%
• Pepper 48 Light 5yr fixed 75% LTV: 4.09%
• Pepper 48 Light 5yr fixed 80% LTV: 4.84%
• Pepper 36 Light 5yr fixed 70% LTV: 4.14%
• Pepper 48 Light HMO 5yr fixed 70% LTV: 4.14%

Opinion

Rates below 4% were unthinkable a year ago. For landlords with refinancing on the horizon, the window for competitive deals may be opening—but whether it stays open depends on how quickly lenders respond to any further base rate cuts. Those still on expensive pandemic-era fixes should be running the numbers now.