As we head into the final quarter of the year, the UK buy to let mortgage market remains steady, but not without its quirks. Whether you're a seasoned landlord or just starting out, staying on top of lender pricing, criteria shifts, and Base Rate forecasts is essential. Here's what you need to know this week.
SWAP Rates Trends
SWAP rates, the key driver behind fixed mortgage pricing, seem to be stuck, with no real changes compared to this time last year. Two-year SWAPs currently sit at 3.68%, almost identical to where they were a year ago at 3.69% and five-year SWAPs tell a similar story, hovering around 3.72%, 0.01% up from last year.
This lack of movement means lenders’ cost of funds has remained largely unchanged. As a result, any rate changes we’re seeing are more about lenders adjusting margins, either to manage demand or stimulate new business, than reacting to market volatility.
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Lender Pricing: A Mixed Bag
A few lenders have made notable pricing adjustments despite the flat SWAP rate environment. Fleet Mortgages has reduced rates by up to 0.15%. Known for its strong service and competitive pricing, Fleet is a solid option for landlords using SPVs with clean profiles. It’s particularly suitable for smaller HMOs and multi-unit blocks, though it doesn’t cater to layered company structures or day-one remortgages.
In contrast, Clydesdale Bank has increased rates by around 0.2%. Its affordability model is based on total income and outgoings, which works well for landlords with one or two properties and a strong personal income, but less so for those with larger portfolios.
Meanwhile, Aldermore has cut its rates by up to 0.2%. As one of the original challenger banks, Aldermore offers flexible lending criteria for trading companies and day-one remortgages, making it a valuable option for more complex cases.
Lending Criteria: New Opportunities for Landlords
Two key updates on lending criteria are worth highlighting this week. First, Aldermore has introduced day-one remortgages based on open market value (OMV). This is a significant development for landlords using bridging finance to acquire below-market-value properties. Provided the purchase is an arm’s-length transaction and the property is habitable at the time of valuation, landlords can refinance immediately and release equity. Aldermore also accept TR1 forms at application stage to work around Land Registry delays, an increasingly common issue.
Second, Yorkshire Building Society (YBS) has enhanced its semi-commercial product range, introducing tiered pricing at 55%, 65%, and 75% LTV, with rates starting from 5.5% and a 2% fee. This is highly competitive for the semi-commercial space. The updated criteria now include smaller HMOs (up to six beds) and holiday lets, making it a strong option for landlords with mixed-use or diversified portfolios.
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Base Rate Outlook: Don’t Hold Your Breath
Despite hopes for a rate cut, most city economists now expect the Bank of England to hold the Base Rate at 4% for the remainder of the year. Inflation remains persistent, and while GDP growth is underwhelming, it’s not enough to trigger immediate action.
Looking ahead to 2026, predictions are mixed. Some analysts expect no cuts at all, while others foresee one or two modest reductions. The key takeaway is that fixed rates are unlikely to fall significantly in the near future, so landlords waiting for a better deal may be waiting longer than expected.
Self-Managed vs Agent-Managed Lettings: Tenant Trust and Service
Recent data comparing tenant experiences with self-managed landlords versus those using letting agents reveals some interesting insights. Based on thousands of verified tenant reviews submitted between 2017 and 2024, self-managed landlords consistently received higher satisfaction scores than letting agents across key areas of the rental experience.
Self-managed landlords achieved an average tenant satisfaction score of 2.48 out of 5, compared to 2.32 for letting agents. While both scores suggest room for improvement across the sector, the data indicates that tenants generally feel better looked after when dealing directly with landlords.
However, letting agents performed better in terms of deposit protection. Around 75.1% of deposits handled by agents were fully safeguarded, compared to 66.8% among self-managed landlords. This suggests that agents may have stronger awareness of their legal obligations in this area.
With the upcoming Renters’ Reform Bill and increasing regulatory requirements, more landlords may choose to work with managing agents to ensure compliance. Agents will be required to hold formal qualifications, which could raise standards across the board. Still, the data shows that direct landlord involvement often results in quicker responses and more personal service, something tenants clearly value.
Final Thoughts: What This Means for Landlords
Now is a good time to review your portfolio. With rates stable and some lenders offering sharper pricing, there may be opportunities to refinance or expand. Lender criteria are evolving, especially in the specialist and semi-commercial spaces, so it pays to work with a broker who understands the nuances.
Next Steps
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Call us on 0345 345 6788 or submit and enquiry here and one of our team will call you back.
