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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 (BTL) mortgage rates are rising again as higher global energy costs hit UK borrowers.
This means that landlords coming off fixed-rate deals face the prospect of much higher repayments.
Here, Which? explains what's happening to BTL rates and reveals the cheapest deals currently on the market.
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In August, the average fixed-rate buy-to-let mortgage stabilised at 5.47%.
However, that stability was short-lived. Further conflict in the Middle East has pushed up energy prices, with the market price of Brent crude oil now almost 40% higher than at the start of the year.
Higher energy costs can push up inflation, increasing the chance that the base rate will be higher over the next few years. This has, in turn, pushed up the cost of offering fixed-rate mortgages.
As a result, the average fixed-rate buy-to-let mortgage stood at 5.79% at the start of October.
In monetary terms, a £200,000 loan over a 25-year term at 5.8% costs £35 more per month than at 5.5%.
If you're remortgaging, the impact of rising rates depends on when you took out your current deal. Landlords coming off a two-year fixed-rate mortgage are likely to find slightly higher rates, while those whose five-year fixes are ending could face a much bigger increase in monthly repayments.
The graph below shows how average fixed-rate buy-to-let mortgage rates have changed 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 shifted a few times since the conflict in the Middle East began.
Experts now predict the base rate will end the year at 4%. For example, Barclays Research predicts a 0.25 percentage-point increase in the base rate in November.
Of course, significant escalation or de-escalation in the Middle East could prompt markets to reassess base rate forecasts.
If market conditions improve, lenders may make small cuts. However, if conflict flares up again, as we have seen in recent weeks, then mortgage rates will rise.
As a result, mortgage rates are expected to rise, but they are likely to fluctuate.
Borrowers will find that two-year fixed rates are much lower than five-year fixed rates. The best rates are higher than last month, with rates for those with less equity seeking a two-year fixed rate rising the most.
Most BTL mortgages are available to landlords with deposits of at least 25%, although some higher loan-to-value deals are available.
Average rates give a general idea of what's happening in the market, but when you're taking out a mortgage, you'll want 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% | Vida Homeloans | 3.62% | 8.64% | Arrangement 5% Advance |
| 75% | Vida Homeloans | 3.62% | 8.64% | Arrangement 5% Advance |
| 80% | Molo Finance | 4.71% | 6.44% | Arrangement 4.5% Advance |
Source: Moneyfacts. Rates correct as of 6 October 2026. Deals with up-front fees of more than 5% of the amount borrowed and 'green' deals aren't included.
| 60% | YBS Commercial Mortgages | 4.55% | 8.99% | Arrangement 5% Advance |
| 75% | The Mortgage Works | 4.64% | 8.24% | Arrangement 3% Advance |
| 80% | Gatehouse Bank | 5.29% | 8.25% | Arrangement 5% Advance (Min £999.00) |
Source: Moneyfacts. Rates correct as of 6 October 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 they have 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 5% of the amount you borrow. So, if you borrow £200,000, you'll pay a £10,000 fee.
Fee-free BTL mortgages are less common, making up just 14% of deals, but some deals do have lower upfront fees of around £999 to £1,500.
The Renters' Rights Act will bring changes for landlords in England over the coming years. The first of these changes took effect on 1 May 2026. Read our round-up to learn 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 next major change for landlords is the launch of the landlord register. Initially, the register will allow landlords to show local councils they're complying with the rules. Eventually, tenants will also be able to use the service to check whether their landlord meets key legal requirements.
The service is being rolled out region by region, starting with the West Midlands on 15 December 2026. The roll-out date depends on the location of your rental property, not your home address.
Check the government website to find out when the service launches in your area and, importantly, the deadline to register.
Former Chancellor Rachel Reeves also announced a change for landlords in the 2025 Budget, with tax rates on property income rising by two percentage points.
The new rates will apply from April 2027, and will increase the tax payable under the 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 | Current tax rate | Tax rate from April 2027 |
|---|---|---|
| Basic rate | 20% | 22% |
| Higher rate | 40% | 42% |
| Additional rate | 45% | 47% |
