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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.
Recent cuts to buy-to-let (BTL) mortgage rates were short lived, with lenders increasing rates once again.
The latest rises have been driven by renewed conflict in the Middle East.
Here, Which? explains what's happening to BTL rates and reveals the cheapest deals currently on the market.
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Buy-to-let mortgage rates remain relatively high, although they have fallen from recent peaks. According to Moneyfacts, the average fixed-rate buy-to-let mortgage was 5.47% on 1 August.
Further conflict in the Middle East and fears of its impact on global energy prices have pushed up mortgage rates. These rate increases have been relatively small, typically between 0.05 and 0.2%.
If you're remortgaging, the impact depends on when you took out your current deal. Landlords coming off a two-year fixed-rate mortgage are likely to find similar 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 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 few forecasts expect the base rate to rise by 0.25 percentage points in 2026.
Of course, significant 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 likely to fluctuate slightly for the remainder of the year.
Borrowers will find that two-year fixed rates are lower than five-year fixed rates. The best rates generally increased in July, with the largest rises affecting those with more equity.
Most BTL mortgages are available to landlords with deposits of at least 25%, although some higher loan-to-value deals are available.
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 | 3.44% | 8.24% | Arrangement 3% Advance |
| 80% | ModaMortgages | 4.15% | 8.74% | Arrangement 5% Advance |
Source: Moneyfacts. Rates correct as of 3 August 2026. Deals with up-front fees of more than 5% of the amount borrowed and 'green' deals aren't included.
| 60% | The Mortgage Works | 4.19% | 7.74% | Arrangement 3% Advance |
| 75% | The Mortgage Works | 4.29% | 8.24% | Arrangement 3% Advance |
| 80% | The Mortgage Works | 5.14% | 8.24% | Arrangement 2% Advance |
Source: Moneyfacts. Rates correct as of 3 August 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 pay a £6,000 fee.
Fee-free BTL mortgages are less common, making up just 13% 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 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.
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% |
