As we move further into 2026, the UK property and mortgage markets are beginning to show signs of renewed energy. For buy to let landlords, the landscape is shifting, and understanding these changes is key to making informed decisions about your portfolio.
Here’s your weekly MFB News update from 25th February 2026.
Below, we break down:
• The latest movements in SWAP Rates
• Lender pricing
• Base Rate expectations
• Housing market activity
• The growing trend of landlords turning to rent guarantee insurance
SWAP Rates Ease, Opening the Door to Lower Mortgage Pricing
After a turbulent couple of years, SWAP rates have finally shown some welcome improvement. Two year SWAPs now sit at 3.36%, while five year SWAPs are at 3.55%, both around 0.15% lower than a month ago.
These reductions aren’t being driven by falling inflation, but by market expectations that the Bank of England Base Rate will begin to come down. Lower SWAP rates reduce lenders’ cost of funds, which in turn creates room for more competitive mortgage pricing.
For landlords considering a remortgage or purchase, this softening in the money markets is a positive sign, even if the changes are modest for now.
Lender Pricing: Small Adjustments, Strategic Positioning
Lenders have been gradually adjusting their product ranges in response to recent movements in the SWAP rate. Some, such as the Family Building Society, have reduced rates by up to 0.2%, while others, including Virgin, NatWest, Keystone and Landbay, have made smaller tweaks or introduced cashback incentives.
It’s worth remembering that lenders don’t just price based on the cost of funds. They also balance their lending books across:
• Two and five year fixes
• Loan to value (LTV) tiers
• Buy to let vs residential lending
• Risk appetite and product mix
This means you may see some products fall in price while others rise, even within the same lender. Cashback incentives are also becoming more common, but landlords should be aware that these are always priced into the overall deal.
The key is to look at the total cost of borrowing, including the rate, fees, cashback and term, rather than focusing on any single element.
>> Search thousands of buy to let mortgage rates here
Base Rate Outlook: A Cut in March Looks Likely
Markets are currently pricing in a 92% chance of a 0.25% Base Rate cut in March. However, landlords should be aware that this expectation is already baked into fixed rate mortgage pricing.
Looking further ahead, predictions vary. The most optimistic economists expect two more cuts this year, but a more realistic outlook is one additional 0.25% reduction around mid 2026.
This cautionary outlook is due to inflation pressures, which are expected to rise again later this year due to:
• Higher council tax bills
• Significant public sector pay increases
• Broader household cost pressures
This means the Monetary Policy Committee (MPC) will need to tread carefully. While the economy needs support, inflation cannot be allowed to re-accelerate.
Housing Market Activity Picks Up Slowly but Surely
After a sluggish 2025, the housing market is finally showing signs of life. According to Zoopla, February is on track to record the highest number of new listings in a decade, signalling renewed confidence among sellers.
Both Halifax and Nationwide reported modest house price increases in January, and first-time buyers now have access to the widest range of low deposit mortgages in 18 years.
For landlords, this shift presents two key opportunities:
1. Buying before prices rise further: As affordability improves and activity increases, upward pressure on prices is likely to follow.
2. Reassessing tenant demand: Early signs suggest tenant demand may be softening slightly as more renters consider buying. This won’t remove demand, far from it, but it may slow the rapid rent increases seen in recent years.
Landlords Turn to Rent Guarantee Insurance
One of the most striking trends in recent months is the surge in demand for rent guarantee insurance. Research from Goodlord shows a 41% increase in uptake between September and December 2025, coinciding with the Renters’ Rights Act gaining Royal Assent.
With Section 21 being abolished and eviction processes expected to become longer and more complex, landlords are understandably looking for protection against:
• Non paying tenants
• Extended court delays
• Legal costs
• Property damage
For many landlords, rent guarantee insurance is becoming less of a “nice to have” and more of a risk management essential, particularly for those with mortgages to cover.
>> See how our partners can help you secure the right rent guarantee insurance here.
What Should Landlords Do Now?
The market is shifting, but not in a way that requires panic. Instead, this is a moment for landlords to:
• Review upcoming remortgages in light of falling SWAP Rates
• Consider acquisitions before prices rise further
• Assess tenant demand in their local area
• Explore rent guarantee insurance as part of a broader risk strategy
With the right planning, 2026 could offer a more stable and opportunity rich environment than the past two years.
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