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Sam covers personal finance topics, from the most affordable places to live to the reasons mortgage lenders say no. He enjoys crunching the numbers to help consumers get ahead.
Buy-to-let (BTL) mortgage rates are still rising as higher global energy costs hit UK borrowers.
This means landlords coming off fixed-rate deals face 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 September, the average fixed-rate BTL mortgage jumped by the biggest margin since conflict erupted in March.
As a result, the average fixed-rate buy-to-let mortgage stood at 5.79% at the start of October. In monetary terms, the increase meant a £200,000 loan over a 25-year term costs £35 more a month.
The average fixed-rate BTL mortgage also increased in October, but by a much smaller margin.
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 expects a 0.25 percentage-point increase in the base rate in November.
The latest figures from the Office for Budget Responsibility forecast that the base rate will rise to close to 5% over the next 12 months and will stay above 4% until at least 2031.
As a result, mortgage rates are expected to remain high, but they're likely to fluctuate.
Of course, significant escalation or de-escalation in the Middle East could prompt markets to reassess base rate forecasts.
Borrowers will find that two-year fixed rates are much lower than five-year fixed rates. The best rates haven't moved over the past month, reflecting a calmer market over the past few weeks.
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% | Kensington | 3.69% | 6.45% | Arrangement 5% Advance |
| 75% | Kensington | 3.69% | 6.45% | Arrangement 5% Advance |
| 80% | ModaMortgages | 4.7% | 8.74% | Arrangement 5% Advance |
Source: Moneyfacts. Rates correct as of 3 November 2026. Deals with up-front fees of more than 5% of the amount borrowed and 'green' deals aren't included.
| 60% | NatWest | 4.59% | 6.74% | None |
| 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 3 November 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 75% 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 registration deadline.
Landlords also need to prepare for tax changes coming next year. In the Budget, the Chancellor announced that tax rates on property income will rise by a further two percentage points. This increase is on top of the two-percentage-point rise that former Chancellor Rachel Reeves announced in the 2025 Budget.
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 | Property income tax rate from April 2027 |
|---|---|---|
| Basic rate | 20% | 24% |
| Higher rate | 40% | 44% |
| Additional rate | 45% | 49% |
