Coventry Building Society’s 43% Mortgage Lending Surge: What London Landlords Need to Know

Coventry BS Mortgage Growth: A Snapshot

In 2025, Coventry Building Society (Coventry BS) reported a 43% increase in gross mortgage lending, reaching £9.6 billion. This growth is partly due to its acquisition of The Co-operative Bank and a strategic shift towards higher loan-to-value (LTV) lending. Lending to owner-occupiers and first-time buyers rose, and Coventry BS introduced a limited company buy-to-let (BTL) mortgage product, reflecting a deeper engagement with the private rental sector.

Why This Matters to London Landlords

For private landlords in London's competitive property market, Coventry BS’s lending expansion presents both opportunities and risks. The limited company BTL mortgage product caters to portfolio landlords seeking tax efficiencies and limited liability through company structures.

However, the increased higher LTV lending means landlords may be borrowing more relative to property values, which can elevate default risks if market conditions worsen. This is particularly relevant for landlords with thin equity buffers or accidental landlords.

Practical Implications Across Your Portfolio

Risk Monitoring: Landlords should review mortgage arrangements in light of greater higher LTV lending exposure, stress-testing cash flow forecasts for potential rental income fluctuations.

Compliance and Regulatory Vigilance: Company BTL products introduce specific regulatory requirements around underwriting and affordability assessments. Landlords should ensure compliance with FCA rules and monitor forthcoming guidance relating to buy-to-let lending.

Operational Adjustments: Property management teams, especially those handling HMOs or multiple units, should update processes to manage covenant conditions tied to mortgage borrowing structures. Maintaining clear communication with lenders can help prevent covenant breaches.

Tenant Relations: Changes in lending criteria might impact refinancing or portfolio expansion. Open communication with tenants about possible changes can help manage expectations and reduce misunderstandings.

Segment-Specific Considerations

• Single-Unit Landlords: Prioritise liquidity buffers and consider early dialogue with lenders about potential forbearance.
• HMO Operators: Carefully review mortgage terms to ensure suitability for multi-let income models.
• Portfolio Landlords: Align mortgage and tax strategies, assessing the benefits of new limited company products.
• Accidental Landlords: Seek professional advice and evaluate options such as downsizing or asset sales.

Recommended Next Steps

1. Review your portfolio’s mortgage types, LTV ratios, and lender details.
2. Implement enhanced arrears monitoring with early warning systems.
3. Engage proactively with mortgage providers to clarify terms.
4. Consult compliance specialists to ensure adherence to FCA requirements.
5. Update cash flow forecasts considering rental market and borrowing cost changes.

How Rentals & Sales Can Help

Our expert team offers portfolio reviews focusing on mortgage risk and compliance, pricing strategy consultations to align rent with finance costs, and compliance audits for landlords adopting company BTL mortgages.

Compliance Disclaimer: This article does not constitute legal or financial advice. Landlords should seek professional advice tailored to their specific circumstances before making financial decisions.