Hampshire Trust Bank (HTB) recently revamped its buy-to-let (BTL) range, launching three tiers – Flow, Core and Bespoke – designed to cover the full spectrum of borrowing, ownership and portfolio needs.
Alex Upton, managing director of specialist mortgages and bridging finance, explains the strategy behind the shake-up.
Why did now feel like the right time to introduce Flow?
The BTL market has become more varied and more nuanced. We are seeing a broader spread of deal sizes, ownership structures and portfolio strategies than we have in the past.
We have always supported that range, but we have not always been explicit in how we align pricing and engagement to it. Flow addresses that. It allows us to be more deliberate in where we compete and how we price, without changing the fundamentals of how we lend.
This is a considered evolution of how we present and align our proposition, rather than a reaction to short-term market movements. It sits within a clearer way of articulating our specialist mortgages proposition through three elements: Flow, Core and Bespoke.
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Flow is designed for residential BTL cases within clearly defined criteria, including houses in multiple occupation (HMOs) and multi-unit blocks (MUBs), up to £2.5m, with stronger pricing that reflects where risk is clearly understood.
Pricing sits below our equivalent Core products. That is intentional. It reflects where risk is clearly understood and allows us to compete with greater precision, without changing how we lend.
Every case remains manually assessed, with the same judgement-led approach underpinning each decision. Core sits at the centre of what we do, supporting the wider specialist mortgage range, including semi-commercial and purpose-built student accommodation (PBSA), up to £5m. Bespoke applies to larger transactions, where structure and scale require a more tailored approach.
This is not a change in how we lend, but a clearer articulation of how we align pricing and engagement to the shape of the case.
The market has moved on, and this is about making sure our proposition reflects that in a deliberate and structured way.
How will these changes enhance the options brokers have for their clients?
Brokers are placing a wide mix of cases. Some sit firmly within defined residential BTL parameters. Others involve more complex ownership, larger portfolios or additional structuring.
Flow provides stronger pricing for residential BTL cases within clearly defined criteria, but the benefit is not limited to pricing.
It also brings clarity. Brokers can see how pricing aligns to the shape of the deal and how engagement evolves as complexity or scale increases. That makes it easier to position cases and set expectations with clients from the outset.
What challenges or opportunities do the changes address?
The key challenge is the increasing variation in the market. A single approach does not reflect the range of cases brokers are placing or how landlords are operating.
What this structure does is bring clearer alignment. It introduces a more competitive pricing position where cases are clearly defined, while reinforcing our ability to support complexity and scale through Core and Bespoke.
Importantly, it does that without changing our underwriting approach. Every case is still assessed on its merits. It also reinforces consistency, so brokers know how we will approach a case from the outset.
What trends is HTB currently seeing in the BTL market?
We are seeing a more deliberate approach from landlords.
Portfolio expansion is no longer the default. Landlords are reviewing how their portfolios are structured, how assets are performing, and how they are positioned for the long term.
There has been a lot of commentary around investors exiting the market, but our experience is different. We are seeing experienced landlords becoming more selective and more strategic, rather than stepping away.
That shift is feeding through into how funding is structured, with more emphasis on flexibility, selectivity and long-term positioning rather than volume-driven growth.
How does this differ from how the market used to operate?
The sector has become more professionalised. We are seeing fewer casual or accidental landlords, and more experienced investors with defined strategies and a clearer view of how they use leverage across their portfolios.
That is positive for the market, but it does introduce more nuance into how cases are structured and assessed. It also means funding needs to be aligned more closely to strategy, rather than applied uniformly across a portfolio.
Have lenders kept pace with these changes? If not, what more can be done?
The lenders that have recognised these shifts and adapted are performing well. Those still relying on more standardised or automated models are finding it harder to reflect how portfolios are now structured.
Brokers increasingly want access to decision-makers. They want to be able to discuss cases in detail, work through nuances and move forward with clarity.
At the same time, more generic, automated models are less suited to the way portfolios are now structured. Portfolios are no longer built on consistent leverage or uniform assets, and that requires a more considered approach.
Our focus has always been on judgment-led lending, supported by direct access to decision-makers, and that becomes more relevant as cases become more nuanced.
What differentiates HTB’s approach in the current market?
Our approach is built around judgment-led lending and direct access to decision-makers. As cases have become more nuanced, that has become more important. Brokers want to be able to discuss the detail of a case, understand how it will be assessed and move forward with clarity.
What we have done with Flow, Core and Bespoke is bring greater alignment to that. It allows us to be more deliberate in how we price and engage, while continuing to support the full range of specialist cases in the same way we always have.
That consistency of approach, regardless of complexity or scale, is what underpins long-term broker relationships.
How much more will HTB build on its proposition following these changes?
We will continue to evolve in line with how the market is changing. The introduction of Flow, and the clearer articulation of Flow, Core and Bespoke, is part of that. It is part of an ongoing evolution.
The focus will remain on how we align pricing, engagement and structure to the way landlords are operating, rather than applying a fixed model to a changing market.
What will the lender keep an eye on to inform any changes?
Ongoing dialogue with brokers will remain central. They are closest to the client and the transaction, and that insight is critical.
Understanding how landlords are adapting, how portfolios are being structured and where challenges are emerging will continue to shape how we refine the proposition.
The most effective improvements come from that collaboration, working alongside brokers to structure solutions that reflect how the market is evolving.