Buy-to-Let Mortgage Rates in the UK: An Autumn 2026 Update

At the start of 2026, the general expectation across the mortgage market was that interest rates would continue to ease. Forecasts pointed to one or more base rate reductions during the year, and many landlords planned their refinancing on that basis. Ten months on, the position looks considerably less settled.

On 17 September, the Bank of England held Bank Rate at 3.75%. The vote was split six to three, with the three dissenting members favouring an increase to 4%. The reason is inflation. CPI rose to 3.1% in August, driven in large part by higher energy and fuel costs, and the Bank now expects it to rise further over the coming months before peaking in early 2027.

For landlords, this change in outlook has direct consequences for borrowing costs and refinancing decisions. This article sets out where buy-to-let rates currently stand, the factors behind them, and the points worth considering for anyone with a mortgage due for renewal.

 

Current rates

Pricing across the buy-to-let market is uneven, and the rate a landlord is offered will depend heavily on their circumstances.

Some lenders have reduced rates this month. Paragon has launched two-year fixed rates from 3.80% and five-year fixed rates from 4.80%. Rely, part of OSB Group, has introduced a limited-edition range with two-year fixed rates from 3.59%. HSBC has reduced selected remortgage products, and Shawbrook has cut rates on larger loans by up to 0.25%.

Other lenders have moved in the opposite direction. Aldermore has increased selected fixed rates by up to 0.17%, with two-year fixes now starting at 4.11% and five-year fixes at 5.21%. Average rates also remain well above the lowest available. Moneyfacts recorded the average fixed buy-to-let rate at 5.47% at the beginning of August.

The difference between the lowest headline rates and the market average is significant. The most competitive products typically require a low loan-to-value, carry a substantial arrangement fee, or apply a stricter rental assessment. A product fee of 3% on a £250,000 loan amounts to £7,500, which can outweigh the benefit of a lower rate over a two-year term. Comparing the total cost over the fixed period, rather than the headline rate alone, remains essential.

 

Two-year and five-year fixed rates

At present, two-year fixed rates are generally priced below five-year fixed rates. This reflects movements in swap rates, the wholesale funding costs lenders use to price fixed products. With inflation rising and some market pricing anticipating base rate increases into 2027, longer-term funding has become more expensive, and lenders have adjusted their pricing accordingly.

A lower rate does not necessarily make a two-year fix the more suitable choice. A five-year fix provides a longer period of certainty if rates rise further, and it can also improve affordability, as set out below. A shorter fix may suit landlords who expect current inflationary pressures to ease and who wish to retain flexibility. The appropriate option depends on the individual portfolio, future plans and tolerance for risk.

 

Rental affordability assessments

For many landlords, the amount a lender is prepared to advance is a greater constraint than the rate itself. Buy-to-let affordability is based on interest cover ratios, which require rental income to exceed the mortgage interest by a set margin, calculated at a stressed rate. Requirements vary between lenders and differ for higher-rate taxpayers and limited companies.

Five-year fixed products are often assessed at, or close to, the actual pay rate rather than a higher notional rate. As a result, the same rental income may support a larger loan. This can be particularly relevant for landlords seeking to raise capital on remortgage, or for those moving from a low rate secured several years ago.

 

Limited company borrowing

Historically, limited company buy-to-let mortgages were priced noticeably higher than those for borrowers in their personal names. That gap has narrowed considerably, and a number of specialist lenders now price the two closely. Competitive products are also available for HMOs and multi-unit properties. Landlords considering incorporation should review the current lending options alongside professional tax advice.

 

Wider market conditions

The Renters' Rights Act has changed the regulatory framework for landlords this year, and the private rented sector continues to shift towards larger, more professional portfolios. Some smaller landlords are reassessing whether their investments remain viable, while established portfolio landlords are refinancing, consolidating and, in some cases, expanding. Lender product development has increasingly reflected this trend.

 

Points to consider

Landlords whose fixed rates end within the next six months should begin reviewing their options now. Most lenders allow a product to be secured up to six months in advance, and it is often possible to move to a lower rate before completion if pricing improves.

The Bank of England's next decision is due on 5 November, alongside its latest Monetary Policy Report. Lenders are likely to adjust pricing in response.

Tracker products may also merit consideration. Several lenders have revised their tracker ranges this autumn, and some are now available without early repayment charges, allowing borrowers to move to a fixed rate later without penalty.

In every case, the full cost of a mortgage should be assessed: the rate, fees, affordability criteria, early repayment charges and the terms that apply at the end of the product period.

The buy-to-let market is not in crisis, but conditions remain changeable. Lenders are repricing frequently and taking differing views on the outlook, and decisions made now may affect returns for several years. Landlords with upcoming renewals or investment plans would be well advised to seek independent advice.