As we settle into 2026, the buy to let landscape remains as dynamic as ever. SWAP rates are steady, lenders are quietly adjusting pricing, and new research is shedding light on where landlords are investing to maximise returns.
SWAP Rates: A Welcome Period of Stability
SWAP rates have held almost completely steady this month, with 2‑year SWAPs at 3.44% and 5‑year SWAPs at 3.61%. Month‑on‑month, there’s been virtually no change, and both terms remain around 0.5% lower than this time last year.
For landlords, this stability means fewer sudden pricing shifts from lenders and a more predictable environment when planning remortgages or new purchases. However, various geopolitical situations could disrupt this stability, so we’ll keep you updated.
Search thousands of buy to let mortgage rates here >>
Lender Pricing Updates
YBS Commercial
- Reduce rates by up to 0.2%
- YBS focus on the more complex end of landlord lending, large HMOs, multi‑unit blocks and non‑standard company structures.
- The substantial rate reduction strengthens their position as a go‑to lender for landlords operating beyond the typical “single let through an SPV” model.
- Their manual, common‑sense underwriting, is especially helpful where other lenders may struggle.
Virgin Money
- Reduce rates by between 0.03–0.21%
- Virgin remains a strong choice for landlords with straightforward needs, personal borrowers with fewer than 10 buy to lets and clean, uncomplicated cases.
- Their process is slick and efficient, and even small reductions help improve the overall value when speed and simplicity matter.
The Mortgage Works (TMW)
- Reduce Limited Company rates by up to 0.15%
- TMW are one of the biggest players in landlord lending, particularly in the simple SPV market. Because they hold such a large share of the sector, even modest reductions can prompt wider pricing shifts from other lenders.
- The updated rates make the Limited Company route slightly more competitive, useful given how many landlords now operate through SPVs for tax efficiency.
InterBay
- Reduce semi‑commercial and commercial rates
- Reduce arrangement fees
- InterBay’s pricing adjustments make these specialist investments slightly more accessible to landlords exploring diversification, semi‑commercial units, housing‑association leases or refurb‑to‑let strategies.
- The lower arrangement fees also reduce up‑front costs, improving affordability on more complex projects.
Discover how to diversify your property portfolio successfully >>
TMW Report: How are Landlords Adding Value to Their Properties?
The Mortgage Works’ latest report highlights the upgrades landlords are choosing to boost property value and rental income.
Most common improvements
- Kitchen and bathroom renovations – still the top choice for improving appeal and reducing voids.
- Energy efficiency upgrades like insulation, solar panels and EV chargers, driven by tightening EPC expectations.
Best value adding improvements
- Extra bathroom: Adds around 8% to property value and a 6% rent increase.
- Extra bedroom: Generates 13–15% added value and 12% higher rent, especially in high demand areas.
- Loft conversions/extensions: Offer the strongest uplift—up to 24% in value and 26% higher rent.
Energy efficiency pays off
A or B rated homes achieve an average 10.9% rental premium, and some lenders offer green mortgage discounts for better EPC ratings.
Discover how refurbishment finance can be used to add value to your rental properties >>
Your Commonly Asked Questions, Answered
Does Rental Income Count as Income for Future BTL Applications?
This is a question we hear often, and the answer is generally yes, although it varies by lender.
Lenders still using the £25,000 income rule:
Some lenders require applicants to earn £25,000+, and many will include rental profits within that figure. A few won’t, so choosing the right lender matters.
Lenders with no minimum income requirement:
Others no longer set a minimum and want to see some income to demonstrate financial stability. These lenders take a more pragmatic view of affordability, looking at your wider financial position rather than just your headline salary.
Will rental income help?
In most cases, yes, but a small number of lenders won’t use it. This is where using a broker pays dividends, because we’ll match you to the lender whose criteria fit your setup.
Final Thoughts
Despite ongoing economic uncertainty, the buy to let mortgage market remains resilient. Rates are steady, competition between lenders is slowly returning, and landlords are increasingly investing strategically, whether through value adding refurbishments or by exploring semicommercial opportunities.
Next Steps
Need tailored advice? Speak to an experienced mortgage broker who understands the complexities of buy to let lending. The right strategy now can protect your position and maximise returns in the year ahead.
call our experts on 0345 345 6788 or submit an enquiry here to see how we can help.
