Buy-to-let (BTL) mortgage rates have increased significantly in recent weeks, with product availability also declining, according to data from Moneyfactscompare.co.uk.
Average 2- and 5-year fixed rates have risen since the start of March 2026.
The average 2-year fixed rate has reached its highest level in a year, while the 5-year rate is at its highest point in two years.
Moneyfacts said borrowing costs for landlords have increased notably, with repayments on a £250,000 loan over 25 years now around £1,100 higher annually compared with the start of March.
At the same time, buy-to-let product availability has fallen sharply.
The number of available deals dropped by around 1,300 since the start of the month, with total product numbers falling to 4,332.
Product choice was last below 5,000 in November 2025.
The data also showed increases across loan-to-value (LTV) bands, with average 2-year fixed rates rising to 5.29% and 5-year fixed rates to 5.63%.
The changes come as landlords prepare for additional regulatory requirements, including the introduction of the Renters’ Rights Act in May 2026.
Landlords are also expected to invest up to £10,000 per property to meet a minimum EPC rating of C by October 2030.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Soaring borrowing costs will cause pain to landlords this year, as they join millions of consumers facing higher mortgage repayments.
“This is terrible news, as rising costs could lead to higher rental payments for tenants, or a drop in the pool of properties available for rent if landlords decide enough is enough and sell off their portfolio.
“The unrest in the Middle East has caused absolute mayhem in the residential mortgage market, buy-to-let rates are also being hiked, and hundreds of deals have been pulled from sale.
“The positive sentiment entering 2026 has been shattered, and landlords not only have to face higher borrowing costs, but also prepare themselves for the Renters’ Rights Bill, which comes into effect at the start of May 2026.
“Those who were to take out a mortgage now compared to the start of this month will face higher repayments of £1,100 more a year.
“This is based on a borrowing of £250,000, over 25 years at 5.29%, versus 4.66% at the start of March 2026.”
She added: “It is entirely possible that landlords may have to take on an additional loan to cover refurbishment costs, to ensure they abide by the Decent Homes Standard, which is set out in the Renters’ Rights Bill.
“It is of course essential that tenants feel safe and secure in their homes, and it will be ever more essential to have a dwelling as energy-efficient as possible with rising costs expected this summer.
“Thankfully, lots of progress would have been made to make private lets more energy-efficient over the past six years, under the Minimum Energy Efficiency Standard (MEES) regulations, whereby landlords have been prohibited from letting properties with an EPC rating below E.
“However, landlords’ costs will escalate further, as they are expected to invest up to £10,000 as a spending cap to reach an EPC rating of C by October 2030, subject to the value of a property.
“If that EPC rating is not achieved, landlords could face substantial fines, as the rules apply to all tenancies. Seeking advice will be essential for new or existing landlords to keep on top of the changing legislation and how rising costs and interest rate rises will hit their profit margins.”