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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.
Following a year of falling rates, the cost of buy-to-let (BTL) mortgages have significantly increased over the last month.
Conflict in the Middle East has triggered the biggest rise in mortgage rates since the 2022 mini-budget, prompting experts to rapidly rethink their forecasts for the next few years.
Here, Which? explains what's happening to BTL rates and reveals the cheapest deals currently on the market.
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The sharp rise in the average fixed-rate BTL mortgage shows how the market as a whole has shifted over the past few weeks. In March it was 4.84%, at the start of April it was 5.59%.
The April average, is slightly higher than the 5.55% recorded in 2024, and well above the 3.2% recorded in 2021.
This means the term length of your last fixed-rate deal will dictate how your new rate compares when you come to remortgage. For those coming off a five-year fix, you should prepare for a potentially significant increase in your monthly repayments.
For example, if you borrowed £150,000 at 3.2% in April 2021 on a five-year fixed-rate, with a 20 year mortgage term, you would have around £120,000 outstanding when you come to remortgage.
During those five years, your monthly repayments would have been roughly £850. If you remortgage now at the current average five year rate, your monthly repayments would rise to almost £1,000.
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 been rapidly updated since the conflict in the Middle East began.
Estimates of how long rate increases last and the heights they could hit vary. If tensions ease, rates could still follow the downward path many expected earlier in the year. But the current international volatility makes it difficult to predict what will happen next.
When we last checked Moneyfacts data on 7 April, there were 4,694 BTL mortgages on the market.
In the first three months of 2026, this figure was consistently above 5,000 and there were even 5,529 BTL mortgages available last month. This demonstrates that market volatility has not just impacted rates but also the number of products available.
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 | 3.34% | 7.74% | Arrangement 3% Advance |
| 75% | The Mortgage Works | 3.48% | 8.24% | Arrangement 3% Advance |
| 80% | CHL Mortgages | 4.25% | 8.74% | Arrangement 5% Advance |
Source: Moneyfacts. Rates correct as of 7 April 2026. Deals with up-front fees of more than 5% of the amount borrowed and 'green' deals aren't included.
| 60% | The Mortgage Works | 4.29% | 7.74% | Arrangement 3% Advance |
| 75% | The Mortgage Works | 4.32% | 8.24% | Arrangement 3% Advance |
| 80% | The Mortgage Works | 5.19% | 8.24% | Arrangement 2% Advance |
Source: Moneyfacts. Rates correct as of 7 April 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 13% of deals, but some deals do have lower upfront fees of around £999-£1,500.
The Renters' Rights Act will bring changes for landlords over the coming years. The first of these changes is just weeks away, 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.
| Brand | Tax rate currently | Tax rate from April 2027 |
|---|---|---|
| Basic rate | 20% | 22% |
| Higher rate | 40% | 42% |
| Additional rate | 45% | 47% |
