Buy-to-let fixed mortgage rates are soaring due to unrest in the Middle East
Virgin Money pulls buy-to-let mortgages in ‘another crushing blow to landlords’(Image: PA)
Virgin Money, alongside Clydesdale, will no longer offer new buy-to-let mortgages in “another crushing blow to landlords”, experts warn.
Clydesdale new business buy-to-let products were withdrawn in March, and won’t be re-introduced. Virgin Money new business buy-to-let products will also be withdrawn at 8pm on 28 April, it has been announced.
It follows Nationwide’s acquisition of Virgin Money and Clydesdale – Nationwide already has a dedicated buy-to-let arm in The Mortgage Works and appears to be consolidating its business for landlords to that brand, experts said.
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This comes as buy-to-let fixed mortgage rates are soaring due to unrest in the Middle East, according to the latest research from Moneyfactscompare.co.uk.
Average buy-to-let fixed rates over a two or five-year term have risen since the start of March 2026. The two-year rate is at its highest level for a year at 5.40% and the five-year rate is at its highest level for two years at 5.91%.
Borrowing costs for those who take a two-year fixed deal are now £1,100 higher, compared to the start of March 2026, based on a £250,000 loan, with a 25-year term.
Overall buy-to-let product choice has fallen sharply, by around 1,300 deals since the start of March. Choice was last below 5,000 in November 2025.
Landlords will also be preparing for the Renters’ Right Act, which comes into force this May, and they will be expected to invest up to £10,000 to reach an Energy Performance Certificate (EPC) rating of C by October 2030.
Speaking to Newspage, Ben Perks, Managing Director at Stourbridge-based Orchard Financial Advisers, said it was yet another hit for landlords.
He added: “Another crushing blow to landlords. Landlords already face higher rates, eye-watering fees and now they have a reduced choice of lenders to go to.
“The more lenders in any space, the better, as competition breeds better criteria and helps a wider array of borrowers. It’s always sad to see lenders exit a market.”
Jack Tutton, Director at Fareham-based SJ Mortgages, added: “Virgin and Clydesdale withdrawing from the buy-to-let mortgage market can only be seen as bad news for landlords. Less competition in what is already a difficult market for landlords, will only make it harder to make buy-to-let properties justifiable.
“Both lenders’ policies opened up more options to landlords compared to The Mortgage Works.
“With them already having a large share of the market, it is likely to mean a more expensive mortgage for people who do not meet The Mortgage Works’ lending rules.”