The new year has already brought some meaningful developments for landlords, with shifts across SWAP rates, lender pricing, criteria requirements and, most significantly, the long‑awaited update to the Government’s EPC rules. Below, we’ve broken down the key points to help you understand how these changes may affect your portfolio and future finance plans.
SWAP Rates Remain Stable - But Inflation Tells a Different Story
Two-year SWAP rates have dipped slightly over the past month, moving from 3.48% to 3.44%, a small reduction of 0.04%.
Five-year SWAPs show a similar pattern, easing from 3.66% to 3.63%, a 0.03% decrease.
While both movements are minimal, they indicate gentle downward pressure rather than any significant volatility.
Search thousands of buy to let mortgage rates here >>
Lender Pricing Reductions - Small but Welcome Adjustments
Over the past week, several lenders have made small but welcome reductions to their buy to let mortgage rates, despite there being very little change in their underlying cost of funds. While these aren’t major cuts, they do indicate continued competition in the market.
Clydesdale
- Reduced selected rates across standard products and product transfers by 0.10%
- Best suited to landlords with solid personal income and low personal expenditure due to their overall affordability model
Vida Home Loans
- Introduced reductions across parts of their specialist range
- Strong for Limited Company applications, small HMOs, multiunit properties, and expat landlords
TMW (The Mortgage Works)
- Reduced some non-Limited Company rates by up to 0.20%
- As one of the UK’s biggest buy to let lenders, their changes often influence wider market pricing
Nottingham Building Society
- Lowered selected rates by 0.20%
- Less frequently used due to limited broker engagement but continues offering reasonable, if unexceptional, pricing
Santander
- Made very small reductions of 0.04%
- Suitable mainly for landlords with simpler portfolios due to strict criteria (no HMOs, no multi-units, no Limited Companies)
TSB
- Implemented reductions of up to 0.35%, the largest cuts this week
- Likely aimed at increasing buy to let lending volumes after previously being less competitive
Search thousands of buy to let mortgage rates here >>
Criteria Improvements for Portfolio Landlords
This week brought some helpful criteria updates from Vida Home Loans, making applications easier for portfolio landlords and those carrying out property works.
- No business plan needed for portfolio landlords
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- Vida has removed the business plan requirement for landlords with 4+ mortgaged properties
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- Reduces admin and speeds up applications
- Professional Consultant Certificates now accepted
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- PCCs can now be used as acceptable certification for certain building works
- A more practical and cost-effective alternative to NHBCtype warranties
Get your FREE portfolio review here >>
The Big One: EPC Rules and the Road to 2030
The Government has now confirmed the key updates to energy efficiency rules for rental properties. From 1 October 2030, all rented homes in England and Wales must meet the equivalent of EPC Band C, unless an exemption applies.
A new assessment system, the Home Energy Model (HM:EPC), will replace the current EPC format. Under this model, landlords must meet:
- Fabric Performance Metric
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- Insulation
- Windows
- Airtightness
Plus, either:
- Heating System Metric
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- Usually requiring low carbon heating such as heat pumps
or
- Smart Readiness Metric
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- Solar panels
- Smart meters
- Other microgeneration technology
Costs & Exemptions
Cost cap: £10,000 per property
Lower-value homes: 10% of property value if under £100k
Exemption: 10year exemption if the property cannot meet EPC C after reaching the cap
Eligible spending starts: 1 October 2025
Although the rules may still be refined through consultation, landlords can now start assessing which properties may need upgrades and where costs are likely to fall.
Read our full article on the new EPC announcements >>
Inflation Update and What It Means for the Base Rate
Recent inflation data has shifted market expectations once again. Headline inflation increased to 3.4%, higher than economists anticipated, while core inflation remained unchanged. This slight rise, driven by seasonal factors such as travel costs, alcohol and tobacco, was enough to significantly impact predictions for the next Bank of England meeting.
As a result, most industry experts now consider a February Base Rate cut extremely unlikely.
Markets have already priced this into SWAP rates, which explains why we’re not seeing much week to week volatility. While Base Rate reductions are still expected later in the year, they now appear further away than many landlords hoped.
For landlords considering remortgaging, this means the market is likely to remain relatively steady in the short term. If the Bank of England were to surprise the market with a cut, SWAP rates might edge down slightly, but the impact on mortgage pricing would be modest. For now, stability, not cheaper rates, is the theme of early 2026.
If you’re unsure how these developments affect your own portfolio, or want to discuss remortgage options, affordability, Limited Company lending or EPC‑related finance, we’re always here to help.
Next Steps
Get in touch, call our experts on 0345 345 6788 or submit an enquiry here to see how we can help.
