Jeni shares the latest UK buy to let updates, including stable SWAP rates, lender pricing tweaks, semi-exclusive first-time buyer BTL products, and 2026 market forecasts. Stay informed and plan with confidence.
SWAP Rates & Base Rate: What’s Happening?
SWAP rates have remained steady in recent weeks, showing only minor movements. As of now, two-year SWAPs are at 3.49%, down from 4.07% this time last year, while five-year SWAPs sit at 3.62%, compared to 3.80% a year ago. This means the gap between two-year and five-year rates remains narrow, with both slightly lower than last year; good news for landlords seeking fixed-rate certainty.
The markets have priced in a 0.25% Base Rate cut for next week, but if the Bank of England doesn’t deliver, fixed rates could edge upward. Waiting for the MPC decision is risky; locking in now protects you if rates rise, and most lenders will let you switch to a lower rate before completion if rates fall.
Mortgage Pricing & Lender Updates
Despite stable funding costs, some lenders have trimmed rates to stimulate activity. This is largely a strategic move to attract borrowers who’ve been sitting on the sidelines, waiting for clarity after the Autumn Statement and upcoming Base Rate decisions.
Here’s what we’ve seen:
- Kensington: Reductions of up to 0.4%, likely aimed at boosting uptake in specialist segments.
- Landbay: Cuts of up to 0.5%, targeting professional landlords and portfolio investors.
- Skipton: Down by 0.1%, a modest tweak to stay in the mix for mainstream buy to let.
- The Mortgage Works: Rather than pricing changes, they’ve focused on criteria enhancements for Limited Company lending, widening their appeal to landlords using corporate structures.
These moves reflect a competitive market where lenders are balancing profitability with the need to maintain momentum. For landlords, this means there are opportunities to secure better deals, especially if you act before any potential Base Rate surprises.
Search thousands of buy to let mortgage rates here >>
Foundation Home Loans: First-Time Landlord and First-Time Buyer Opportunity
Foundation Home Loans has launched semi-exclusive rates for first-time landlords who are also first-time buyers entering the buy to let market. These products, which are only available to a select group of brokerages, including MFB, give you access to deals that you won’t find elsewhere.
What makes these products stand out?
They allow purchases in personal names or via a Limited Company, which is rare for first-time landlord-first-time buyer products. Many lenders avoid these borrowers because of perceived risks and complex underwriting, leaving a gap in the market. Foundation’s move is significant because it opens the door for new investors who want to start building a portfolio without owning a residential property first.
Why does this matter?
For landlords, criteria flexibility is critical. Whether it’s unusual ownership structures, Limited Company setups, or non-standard property types, these details can make or break a deal. Having lenders willing to accommodate these scenarios means more opportunities and fewer roadblocks for investors.
Get in touch with us now to check your eligibility >>
Criteria Changes: Limited Companies & Intercompany Loans
The Mortgage Works has broadened its Limited Company criteria to make buy to let lending more accessible and flexible:
- Shareholders under 20% ownership no longer need underwriting, making it easier for family-owned companies to include children or minority investors.
- Directors can now sell their main residence to their Limited Company for rental purposes, a big win for landlords restructuring for tax efficiency.
- Intercompany loans allowed, even if ownership structures differ, giving landlords more options to fund deposits creatively.
These changes matter because complex ownership structures and funding arrangements often block deals. By relaxing these rules, The Mortgage Works opens doors for landlords who need flexibility to grow their portfolios.
Search thousands of buy to let mortgage rates here >>
2025 Market Recap & 2026 Forecast
The UK buy to let market has shown resilience this year, despite economic uncertainty and regulatory changes. Here’s the bigger picture before we dive into the numbers:
- House prices have edged up modestly
- Rental yields are at their highest in over a decade
- Tenant demand continues to grow
Meanwhile, lending activity remains strong, proving that new investors are entering the market even as some landlords exit.
Key Highlights from 2025:
- House Prices: Up 1.9% year-on-year, but growth varies widely by region. Northern Ireland leads with +9.3%, while parts of southern England remain flat.
- Rental Yields: UK average now 7.11%, the highest since 2011. Wales tops the chart at 8.4%, with strong performance across the North and Scotland.
- Tenant Demand: Increased by 1.2%, reinforcing confidence in the rental sector.
- Buy to Let Lending: Purchase activity hit £10bn, matching 2024 and exceeding 2023, clear evidence that investor appetite remains strong.
Looking Ahead to 2026:
- Rents forecast to rise 2–2.5% annually for the next three years.
- House prices expected to grow 3–3.5%, according to leading analysts.
- Base Rate predicted to settle between 3–3.5%, meaning fixed mortgage rates may stay broadly stable.
For landlords, this means steady rental growth, strong yields, and continued demand, but also the need to plan carefully in response to interest rate movements and regulatory changes.
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.
