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Sam covers personal finance topics, from the best savings rates to the reasons mortgage lenders say no. He enjoys crunching the numbers to help consumers get ahead.
Buy-to-let rates shot up this spring, in response to the global instability created by conflict in the Middle East.
While rates eased slightly in June, the best deals remain more expensive than those available at the start of the year.
Here, Which? explains why buy-to-let rates rose, whether they're likely to fall and the cheapest deals currently available to landlords.
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Rates jumped up between the start of March and April. As a result, by early April, 43% of new buy-to-let mortgages were agreed at rates of 5% or above, up from just 8% in January, according to Hamptons analysis of Connells Group data.
Moneyfacts data also shows the rate increases during this period. In March, the average fixed rate was 4.84%, and at the start of April, it was 5.59%.
The market has calmed since the middle of April, but rates remain high. Between 1 May and 1 June, there was no change to the average rate (5.53%) of a fixed-rate buy-to-let mortgage, according to Moneyfacts data.
In June, rates fell again. The average fixed-rate buy-to-let mortgage was 5.42% on 1 July.
If you are coming to remortgage, the term length of your previous deal will determine whether your next mortgage is slightly more expensive or cheaper. For those coming off a two-year fix, you may find a slightly cheaper deal. For those coming off a five-year fix, you should prepare for a potentially significant increase in your monthly repayments.
The graph shows what's happened to fixed BTL mortgage rates over the past three years.
At the start of 2026, lenders expected BTL rates to continue to drift down throughout the year. These forecasts have gone through a few iterations since the conflict in the Middle East began.
Experts now generally predict that the base rate will remain at 3.75% during 2026. A minority of forecasts expect the base rate to rise by 0.25 percentage points in 2026.
Without further external shocks, rates should remain steady for the next few months. Of course, if there is renewed conflict in the Middle East, rates may rise again.
Borrowers will find that two-year fixed rates are lower than longer five-year fixes. The best rates generally dropped in June, with the largest cuts coming for those with more equity.
Most BTL mortgages are available to landlords with deposits of at least 25%, although there are some higher loan-to-value deals.
Looking at average rates gives us a general idea of what's happening in the market, but when you're taking out a mortgage, you'll want to get the cheapest deal you can.
The tables show the lowest initial rates currently available on two-year and five-year fixed-rate buy-to-let mortgages.
| 60% | The Mortgage Works | 3.19% | 7.74% | Arrangement 3% Advance |
| 75% | Landbay | 3.39% | 7.24% | Arrangement 5% Advance |
| 80% | ModaMortgages | 3.70% | 8.74% | Arrangement 5% Advance |
Source: Moneyfacts. Rates correct as of 30 June 2026. Deals with up-front fees of more than 5% of the amount borrowed and 'green' deals aren't included.
| 60% | The Mortgage Works | 3.99% | 7.74% | Arrangement 3% Advance |
| 75% | The Mortgage Works | 4.23% | 8.24% | Arrangement 3% Advance |
| 80% | The Mortgage Works | 5.14% | 8.24% | Arrangement 2% Advance |
Source: Moneyfacts. Rates correct as of 30 June 2026. Deals with up-front fees of more than 5% of the amount borrowed and 'green' deals aren't included.
These rates are significantly more attractive, but there are drawbacks. The cheapest deals here have substantial upfront fees, which you'll need to factor in when comparing overall costs.
For example, the 60% LTV mortgage with the lowest rate has a fee of 3% of the amount you borrow, so if you borrow £200,000, you'll need to pay a fee of £6,000.
Fee-free BTL mortgages are less common, making up just 14% of deals, but some deals do have lower upfront fees of around £999-£1,500.
The Renters' Rights Act will bring changes for landlords in England and Northern Ireland over the coming years. The first of these changes came into force on 1 May 2026. Head to our round-up to find out all about the new requirements and when additional changes will be implemented.
You can also check the government information page, which sets out guidance for landlords and letting agents.
The Chancellor, Rachel Reeves, also announced a change for landlords in the Budget, with tax rates on income from property rising by two percentage points.
The new rates will apply from April 2027 and will increase the tax paid by basic, higher and additional rates of property income tax in England, Wales and Northern Ireland. Scotland sets its own income tax rates
The table shows the new tax rates.
| Band | Tax rate currently | Tax rate from April 2027 |
|---|---|---|
| Basic rate | 20% | 22% |
| Higher rate | 40% | 42% |
| Additional rate | 45% | 47% |
