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Buy-to-let (BTL) mortgage rates have been falling over the past few months, with the average rate at its lowest figure since the summer of 2022.
The downward trajectory has been driven by four cuts to the Bank of England base rate over the past 12 months, reducing it from 4.75% to 3.75%.
Here, Which? explains what's happening to BTL rates and reveals the cheapest deals currently on the market.
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The average BTL mortgage rate has fallen every month since February 2025, with larger drops in the first few months of 2025.
The January average, 4.92%, is lower than the 6.28% recorded in 2024, but well above the 3.12% recorded in 2021.
This means the term length of your last fixed-rate deal will dictate whether you'll be better or worse off when you come to remortgage your property.
Landlords coming off a two-year fixed-rate mortgage will likely find their mortgage costs fall. However, those coming off a five-year fixed-rate mortgage will see their costs rise significantly.
The graph below shows what's happened to fixed BTL mortgage rates over the past year.
Lenders are expected to continue to cut buy-to-let mortgage rates over the next few months. The base rate is not expected to fall at the next MPC meeting in February, but experts do forecast it to be cut at the meeting in March.
Hamptons forecasts that mortgage rates will continue to decrease in 2026. It thinks that 'inflation is likely to fall faster than anticipated next year, allowing for two or three base rate cuts'.
Other predictions are more cautious. Barclays research anticipates just one base rate cut in 2026.
When we last checked Moneyfacts data on 15 January, there were 5,209 BTL mortgages on the market. Most 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 | 2.59% | 7.74% | Arrangement 3% Advance |
| 75% | Birmingham Midshires Solutions | 2.71% | 8.09% | Arrangement 3% Advance |
| 80% | CHL Mortgages | 3.35% | 8.74% | Arrangement 5% Advance |
Source: Moneyfacts. Rates correct as of 15 January 2026. Deals with up-front fees of more than 5% of the amount borrowed and 'green' deals aren't included.
| 60% | The Mortgage Works | 3.44% | 7.74% | Arrangement 3% Advance |
| 75% | The Mortgage Works | 3.57% | 8.24% | Arrangement 3% Advance |
| 80% | HSBC | 4.67% | 7.25% | None |
Source: Moneyfacts. Rates correct as of 15 January 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 over the coming years. The first of these changes will come 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.
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% |
