Try a higher debug value, say 5, but otherwise I don’t really know.
I can try to connect to that mail server from my phplist and it fails, as expected, on the login
SERVER → CLIENT: 220 smtp.bhosted.nl ESMTP
CLIENT → SERVER: EHLO dcameron.me.uk
SERVER → CLIENT: 250-smtp.bhosted.nl250-PIPELINING250-SIZE 41943040250-AUTH LOGIN PLAIN250-ENHANCEDSTATUSCODES250-8BITMIME250 SMTPUTF8
CLIENT → SERVER: AUTH LOGIN
SERVER → CLIENT: 334 xxxx
CLIENT → SERVER: xxx
SERVER → CLIENT: 334 xxx
CLIENT → SERVER: xxx
SERVER → CLIENT: 454 4.7.0 Temporary problem. Please try again later.
SMTP ERROR: Password command failed: 454 4.7.0 Temporary problem. Please try again later.
SMTP Error: Could not authenticate.