Banks and building societies are continuing to reprice buy-to-let mortgage deals higher amid the market fallout from the conflict in the Middle East.
This will be hurting some landlords who are already facing higher upkeep costs, more regulation and a less friendly tax regime.
There are almost two million buy-to-let properties that have a mortgage attached, according to the trade association for the banking and financial services sector, UK Finance.
The average two-year fixed rate buy-to-let mortgage is currently 5.47 per cent, according to Moneyfacts. The average five-year fix is 5.76 per cent.
The lowest five-year fixed rate deal on the market is currently 4.29 per cent while the lowest two-year fix is 2.94 per cent, albeit the latter in particular comes with very hefty fees.
We look at what landlords need to consider when taking a new mortgage, and list some of the best deals available.
Tougher conditions: Landlords have higher costs and will now have to adapt to new rules under the Renters’ Rights Act in 2026, including stricter policies on evictions and rent rises
> Quick link: Compare the best buy-to-let mortgage deal for you
How cheap are buy-to-let mortgage rates?
Many landlords who own with a mortgage will be seeing their profits decimated by higher mortgage rates, having been lulled into a false sense of security by the ultra-cheap finance available in recent years.
Mortgaged buy-to-let investors often use interest-only mortgages to ensure higher cashflow. But when paying interest-only, if the mortgage rate doubles or triples, so do the monthly payments.
The average five-year fixed rate buy-to-let mortgage rate is 5.76 per cent, according to Moneyfacts.
It means a typical landlord requiring a £200,000 interest-only mortgage on a five-year fix will need to pay £959 a month in mortgage costs if buying or remortgaging at the moment, excluding fees.
Add that to the cost of periods where the property is empty, repairs, maintenance, letting agent fees, compliance checks, insurance and service charges and it shows how reliant many landlords will be on rents rising in order to turn a profit.
What does it mean for landlords?
Many of the landlords who are now remortgaging had become accustomed to rock bottom rates.
Someone who purchased five years ago will have enjoyed an average fixed rate of around 2.5 per cent.
It means on a £200,000 mortgage they would have factored in monthly mortgage costs of around £417 – not the £959 or so they are likely to face when remortgaging today.
That said, mortgage rates remain lower than they were during the summer of 2023 meaning the situation is not as dire as it was.
The average two-year fixed rate for buy-to-let reached a high of 6.97 per cent in July 2023, while the average five-year fixes hit 6.82 per cent.
Some landlords will also do much better than the market average, by using a whole-of-market mortgage broker to find them a cheaper rate. This will depend to some extent on how much equity they have in the property.
A word of warning here: many of the lowest buy-to-let mortgage rates come with staggeringly high fees. These can be as high as 10 per cent of the total mortgage amount in some cases. On a £200,000 mortgage that would equate to £20,000.
This means it’s essential to look at the overall cost of the mortgage and factor in both the fees and the interest rate.
To secure the cheapest deal, landlords will also typically need to be buying with at least a 40 per cent deposit or be remortgaging with at least 40 per cent equity in the property.
Howard Levy, director of broker SPF Private Clients, says: ‘Landlords who need to remortgage within the next six months or so should consider booking a fixed rate now, in case rates rise between now and when they need to move onto the new deal.
‘If rates do rise, you will be pleased you took this precaution; if, on the other hand, rates fall, then you should be able to book onto a new, lower rate instead of the higher, reserved rate.
‘With buy-to-let mortgages, whether you opt for a fixed rate or base-rate tracker will partly depend upon which best fits with your rental stress tests.
‘If you are purchasing a new buy-to-let, then usually you will have to opt for a five-year fixed rate unless you are putting significant funds in for your deposit.
‘If you don’t have the funds available for a sizeable deposit, then the choice of deal is largely taken out of your hands.’
Financial shock: Many landlords who own with a mortgage will be seeing their profits cut down by higher mortgage rates
Should you fix or take a tracker?
The case in favour of fixing for five years
Five-year fixes offer certainty over monthly payments for the next five years and may appeal to some borrowers, given how much interest rates have moved around in recent years.
And fixing for five years, rather than two years, can sometimes enable landlords to borrow more.
This is because lenders tend to impose more generous affordability tests.
‘The bigger landlords seem to be sticking with five-year fixes, preferring to lock in for the longer term,’ said Levy.
‘They do get the equivalent of pound cost averaging though, as rate expiries are coming up for these clients all the time, so if rates drop they book a five-year fix at that time for the next few properties for example.
‘For those who own buy-to-lets in their personal name, typically, a five-year fix will be stressed at a lower rate than a two-year fix.
‘Given the existing borrowing, higher rates and higher interest cover ratios, it may not be possible to raise the level of funds required without fixing for five-years in some cases.’
‘Paying higher product fees, achieving higher rental incomes, or not being classed as a higher-rate taxpayer are also ways to boost maximum borrowing levels.’
Expert: Howard Levy, director of buy-to-let lending at mortgage broker SPF Private Clients
The case in favour of fixing for two years
Two year fixes tend to offer slightly lower rates, for those looking to preserve cashflow.
Many of those opting for a two-year fix will be doing so because they think interest rates will fall over the next couple of years.
They are banking on the expectation that once inflation subsides, the base rate – and then mortgage rates – will come down, allowing them to fix at a cheaper rate.
Broker, Howard Levy, argues that many landlords are avoiding the stress testing required for shorter fixes by sticking with their current lender when they refinance.
He adds: ‘Two-year fixed rates don’t usually fit stress tests on a remortgage, unless the loan-to-value is relatively low, but they would be available for a product transfer.
‘We are seeing many clients opt for a two-year fix for a product transfer with the view that in two years’ time rates will be lower so they can remortgage onto a more palatable rate.’
The case in favour of a tracker mortgage
Those that are confident of rates falling faster and further than expected may even be trying their luck with a tracker mortgage.
Trackers follow the Bank of England’s base rate, plus or minus a set percentage.
For example, someone could be paying base rate plus 0.5 per cent on top with a tracker. With the base rate at 3.75 per cent, they’d pay 4.25 per cent at present.
But if the base rate was cut to 3 per cent, for example, their rate would fall to 3.5 per cent.
The main benefit of tracker deals is that they typically don’t come with early repayment charges.
This means if mortgage rates fell over the coming year, someone with a tracker deal could switch to a cheaper fixed deal as and when they liked.
On the flip side, if the base rate stays the same or even rises this year, it could end up becoming an expensive gamble.
Howard Levy adds: ‘Ensure you have a surplus from the rent above and beyond the mortgage payments, and also to ensure that if you opt for a tracker you are happy with the risk that rates might increase later down the line and that you have a sufficient buffer – be it rental surplus or your own funds – to cope with such a scenario.’
Gamble: At present, borrowers opting for a tracker deal will likely pay less than if they fix. The hope is that interest rates will fall or stay the same.
What are the best buy-to-let rates?
Below, we highlight some of the best deals available to buy-to-let landlords.
Buy-to-let mortgage rates often come with product fees that can be as high as 10 per cent of the loan. The below are the deals with the cheapest overall annual costs when both the initial rate, fees (for arrangement and valuation etc), and cashback are taken into account.
This is based on the property value being £200,000. The mortgages sourced are available for remortgage deals. For those purchasing, rates may be slightly different.
Please note, these rates were the best deals sourced as of 6 April 2026.
Cheapest deals for those owning in their personal name
60% loan-to-value (LTV) mortgages
Five-year fixed rate mortgages
Barclays has a five-year fixed rate at 4.88 per cent with £0 arrangement fees and £500 cashback at 60 per cent loan to value.
The Mortgage Works (TMW) has a five-year fixed rate at 4.82 per cent with £0 arrangement fees at 65 per cent loan to value. It does come with a £280 valuation fee.
Two-year fixed rate mortgages
Barclays has a two-year fixed product at 4.83 per cent with £0 arrangement fees and £500 cashback at 60 per cent loan to value.
The Mortgage Works (TMW) has a two-year fixed rate at 3.59 per cent with 3 per cent fees at 65 per cent loan to value. It also comes with a £280 valuation fee.
75% loan-to-value (LTV) mortgages
Five-year fixed rate mortgages
Barclays has a five-year fixed rate at 4.72 per cent with a £1,795 arrangement fee at 75 per cent loan to value. It also comes with £500 cashback
The Mortgage Works (TMW) has a five-year fixed rate at 4.32 per cent with a 3 per cent arrangement fee at 75 per cent loan to value. It also comes with a £280 valuation fee.
Two-year fixed rate mortgages
The Mortgage Works (TMW) has a two-year fixed rate at 3.64 per cent with 3 per cent arrangement fee at 75 per cent loan to value.
Barclays has a two-year fixed rate at 4.77 per cent with a £1,795 arrangement fee at 75 per cent loan to value. It also comes with £500 cashback.
Best two-year tracker without early repayment charges
60% LTV
BM Solutions has a two-year tracker at 4.2 per cent with a 1 per cent fee at 60 per cent loan to value. This is base rate (3.75 per cent) plus 0.45 per cent. The deal also comes with £300 cashback.
25% LTV
BM Solutions has a two-year tracker rate at 4.4 per cent with a 1 per cent fee at 75 per cent loan to value. This is base rate plus 0.65 per cent. This product also comes with £300 cashback.
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