This week, Jeni Browne explores the latest movements in SWAP rates, highlights key lender pricing updates, and breaks down what upcoming changes to pet legislation mean for landlords. She also shares expert insights into Base Rate forecasts and what landlords can expect as we approach 2026.
SWAP Rates: Stability Amid Speculation
SWAP rates have remained relatively stable over the past month, with 2-year SWAPs sitting just above 3.7% and 5-year SWAPs around 3.76%. While these figures show minor fluctuations year-on-year, the real story is the market’s calm ahead of the Autumn Statement. There’s growing speculation about how Chancellor Rachel Reeves might address the UK’s fiscal challenges, with potential tax changes looming. Thankfully, markets haven’t reacted prematurely, which means mortgage rates haven’t spiked, yet.
Lender Pricing: Small Tweaks, Big Implications
While SWAP rates have held steady, several lenders have made subtle yet noteworthy pricing adjustments.
Santander has increased rates by up to 0.1%. They remain a strong option for landlords with smaller portfolios and properties of non-standard construction, particularly those not using a Limited Company structure.
Meanwhile, BM Solutions has also increased rates by 0.1%. Known for its competitive pricing and flexible approach to property types, it’s especially accommodating of ex-local authority and high-rise flats.
Virgin Money has reduced its rates by 0.15%, offering a competitive edge for landlords seeking day-one remortgages or financing properties with deck access, a feature many lenders tend to avoid.
Fleet Mortgages has also lowered rates across its HMO and multi-unit freehold block products by up to 0.15%. Fleet remains a strong choice for landlords with larger portfolios and smaller-scale HMOs or MUFBs. While these adjustments may appear modest, they can have a meaningful impact when refinancing or expanding your buy-to-let portfolio.
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Pets in Rentals: What Landlords Need to Know
The upcoming Renters' Rights Bill is set to significantly change how landlords handle pet requests. Under the proposed legislation, you will no longer be able to unreasonably refuse a tenant’s request to keep a pet.
To help you prepare, there are several key points to consider:
- You’ll be able to require tenants to take out pet damage insurance as a condition of approval, which is explicitly built into the bill.
- It’s advisable to use a pet agreement or addendum alongside the tenancy agreement. This should clearly outline terms such as approved pet types, noise restrictions, cleanliness expectations, and responsibilities for wear and tear.
- Conducting thorough inventory checks and midterm inspections is also essential. Documenting the property’s condition before and after pet approval will help protect you against disputes and support any insurance claims.
Speaking of insurance, most standard landlord insurance policies currently don’t cover pet-related damage, so it’s worth reviewing your coverage. Insurance brokers like Alan Boswell are working to include this in future offerings, making it a good time to explore your options.
Importantly, you must not charge pet deposits or fees, ignore pet requests, or refuse pets without a valid reason, such as allergies, unsuitable property types, or safety concerns. Blanket bans or personal preferences (e.g. “I don’t like cats”) will no longer be acceptable under the new rules.
Base Rate Predictions: What’s Next?
Economists are divided, but many expect the Bank of England Base Rate to fall to around 3–3.5% by the end of 2026. With inflation still above target, the Monetary Policy Committee faces a tough balancing act.
If predictions hold, those of you on variable rates could see a welcome reduction in monthly payments. Fixed rates, however, are already priced with future expectations in mind, so unless something dramatic happens, we’re unlikely to see major changes.
That said, with the Autumn Statement approaching, now might be a smart time to lock in a fixed rate. You can always switch later if rates drop, but securing a deal now could protect you from any surprises.
Find your next BTL mortgage rate here >>
Final Thoughts
Whether you’re reviewing your mortgage options or preparing for changes in tenancy law, staying informed is key. If you’d like tailored advice on your portfolio, we’re here to help.
Next Steps
For tailored advice on buy to let mortgages, get in touch with our expert team.
Call us on 0345 345 6788 or submit and enquiry here and one of our team will call you back.
