As we enter the final three months of 2025, UK buy to let landlords are facing a mix of opportunity and uncertainty. From falling SWAP rates to the upcoming Making Tax Digital deadline, there’s plenty to unpack this week.
Mortgage Market: SWAP Rates & Lender Pricing
Let’s start with some good news. SWAP rates have dipped slightly across both 2-year and 5-year terms.
- 2-year SWAPs are currently at 3.57%, down from 3.70% a month ago and 3.87% a year ago.
- 5-year SWAPs sit at 3.62%, down from just over 3.7% last week and slightly below the 3.67% seen a year ago.
This marks the first time in a long while that we’ve seen improvements both month-on-month and year-on-year. While the exact reasons are unclear, it could be due to calmer market sentiment or expectations of slower economic growth.
Lenders have responded with modest rate reductions, typically around 0.05% to 0.1%. For those of you landlords looking to borrow, the most cost-effective buy to let 2-year fix currently sits around 4.03%, while 5-year fixes hover near 4.08% for personal borrowing.
Limited Company borrowers will see slightly different figures, with overall best-value 2-year fixes around 4.81% and 5-year options at approximately 4.79%.
You will see lower headline rates; however, these come with 5-9% arrangement fees which makes them less cost-effective across the whole mortgage term.
Search for your next buy to let mortgage here >>
Making Tax Digital: Time to Get Ready
If you earn rental income, Making Tax Digital (MTD) is coming, if not now, then soon. For many landlords, quarterly digital tax returns will replace the traditional annual submission starting April 2026.
Based on recommendations and research, Jeni has started trialling Hammock, a landlord-focused software that helps track rental income and expenses. She found it straightforward to set up and surprisingly user-friendly, even for someone who doesn’t consider themselves tech-savvy. So far, her experience has been positive, and it’s a tool she feels could make life easier for landlords preparing for MTD.
Please note, we have no affiliation with Hammock, and this is Jeni’s independent opinion based on her experience.
Read our guide on how to prepare for Making Tax Digital >>
Watch our video on how to prepare for Making Tax Digital >>
Housing Market: Budget Jitters Slow Activity
The UK housing market is showing signs of hesitation. Speculation around potential property tax changes in the upcoming budget has led to a noticeable slowdown in transactions. Buyer enquiries and new listings dropped by 5% in September compared to the same time last year, according to Rightmove.
There’s growing concern that the government may introduce new taxes on homes valued over £500,000 or remove capital gains exemptions on primary residences above £1.5 million. While these ideas are still exploratory, the uncertainty is enough to make both buyers and sellers pause.
Interestingly, this lull in activity could present opportunities for landlords who are ready to move. With fewer buyers in the market, there’s more room to negotiate on price, especially if you're confident in your long-term strategy and less reliant on short-term market movements.
Find your next BTL mortgage rate here >>
Base Rate Outlook: No Cuts Just Yet
The Bank of England’s Chief Economist, Hugh Pill, has made it clear that any future interest rate cuts will be slow and cautious. Despite sluggish economic growth, inflation remains stubbornly above the 2% target, prompting the Bank to hold off on any immediate changes.
Financial markets have now priced out the possibility of a rate cut at the next meeting in November, with expectations shifting to 2026. For you, this means mortgage rates are likely to remain stable in the short term. While that may not be the rate relief some were hoping for, it does offer a degree of predictability when planning future investments.
BM Solutions: Credit Score Tips for Landlords
In our latest Meet the Lender session, Isaac from BM Solutions shared insights into why mortgage applications are sometimes declined, especially due to credit scoring.
BM Solutions uses data from all three major credit bureaus, and discrepancies between them can affect your application.
Common pitfalls include missed payments, outdated addresses, and inaccuracies. As always, being fully transparent with your broker from the outset about any credit issues, major or minor, helps you secure a suitable rate more quickly and with less stress. Our brokers can help interpret your credit profile and guide you toward a stronger application.
Next Steps
Even in a quiet mortgage market, landlords must stay informed.
For tailored advice call us on 0345 345 6788 or submit an enquiry here and one of our team will call you back.
