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"Lovely" Loughborough BS goes up to 80% LTV on BTL lending with defaults

Journalist: Justin Moy, Contributing Editor

ended 07. April 2025

Brokers have said Loughborough Building Society is on a roll, offering real-world loans to borrowers. Early last week, the lender announced it “will accept applications up to 95% LTV where applicants have unsatisfied Defaults on Mail Orders, Utility Bills, Bank Accounts, Car Insurance and Telecommunications without the need to refer" — and has programmed its systems to accept these cases saying “no explanation is required”. It has now announced the same policy will be applied to buy-to-let mortgage applications up to 80% Loan to Value.

According to Michelle Lawson, Director at broker, Lawson Financial: “These are great and positive changes from the lovely Loughborough. This is a lender that brings a common sense, real-world approach to lending.” Views below. 

8 responses from the Newspage community

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David StirlingVerified
Independent Financial Adviser at Mint Wealth
Loughborough Building Society is demonstrating a refreshing approach by applying common sense in a world where even small credit setbacks can often derail mortgage applications. This forward-thinking innovation deserves recognition, as defaults don't always indicate uncreditworthiness, but rather reflect past mistakes. By offering mortgages to individuals with minor credit issues, Loughborough is tapping into a valuable and underserved niche in the market.
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Harry GoodliffeVerified
Director at HTG Mortgages
Loughborough is reading the room and it’s refreshing. With rising costs, tougher regulations and higher stamp duty hitting buy-to-let investors hard, many landlords are feeling squeezed. Loughborough’s decision to accept minor credit blips up to 80% LTV for BTL is a smart, welcome move. It acknowledges that imperfect credit doesn’t mean a borrower isn’t reliable — especially in this challenging market. More lenders need to follow suit and adopt this kind of real-world lending. It’s common sense, and it's what the market needs right now.
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Michelle LawsonVerified
Director at Lawson Financial
These are great and positive changes from the lovely Loughborough. This is a lender that brings a common sense, real-world approach to lending. They're on a roll right now.
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Ranald MitchellVerified
Director at bad credit mortgage specialists Charwin Mortgages
Loughborough Building Society are firmly on the front foot, and their latest criteria shift is a tactical masterstroke. By increasing BTL lending to 80% LTV and accepting minor defaults, they’re breaking ranks with a market that’s traditionally unforgiving when it comes to credit blips. This move follows hot on the heels of recent residential changes and shows clear intent: Loughborough want broker and investor attention and they’re earning it. In a landscape where many lenders are still playing it safe, Loughborough are positioning themselves as a go-to option for clients with imperfect credit who are looking to invest. It’s bold, strategic and a real shake-up in the world of specialist lending. Sleepy no more, Loughborough are making serious noise.
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Mike StatonVerified
Director at Staton Mortgages
While 80% LTV is not a new thing in the buy-to-let market, it's a breath of fresh air to see that defaults are considered at such a high LTV for buy-to-let lending. Considering the absolute battering landlords have taken over the past five years, it is good to see that lending policy is using common sense and realising that landlords are not immune to adverse credit. In fact, with all of the cards now firmly in the hands of the tenant, it's no suprise that we are seeing more and more lenders hit with defaults and CCJs. Hopefully we will start to see more breathing space given to landlords in the lending world.
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Pete MuglestonVerified
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
Loughborough BS has been making all the right moves over the course of the past week. It's great to see a smaller lender stepping up with flexible criteria. Increasing buy-to-let lending to 80% LTV and accepting minor defaults opens the door for a wider range of clients, especially those underserved by high street banks. This is a perfect example of how smaller lenders can carve out valuable niches in the market, offering common-sense lending and real solutions. With many borrowers facing affordability challenges or credit blips, Loughborough’s approach shows how mutuals can play a key role in supporting homeownership and property investment.
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Elliott CulleyVerified
Director at Switch Mortgage Finance
Costs for landlords purchasing a BTL property have risen dramatically over the past few years and, as a result, the market has significantly shrunk. Mortgage lenders have been looking to make BTL propositions more attractive and we have started to see more lenders increase their lending limitations to 80% loan to value. 20% deposit will be slightly easier for some landlords to find and reduce the impact of the recent increase to stamp duty tax.
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Sean Horton0
Managing Director at Respect Mortgages
Good news for landlords as Loughborough shows some common sense. Their changes tick all the right boxes: lower rental stress rates, better affordability calculations for those with commitments and, crucially, a pragmatic approach to credit blips. The 80% LTV acceptance with past defaults is especially welcome. Many landlords hit rough patches with minor bills, but it doesn't make them bad borrowers. With rates from 4.89% and free valuations, they're showing there's life beyond the high street for property investors who don't fit perfect credit profiles.