Here are the latest developments shaping the buy to let market, from encouraging lender criteria changes to subtle shifts in SWAP rates and what they signal for mortgage pricing. We also explore Base Rate expectations for 2026 and the outlook for house prices, helping landlords plan with confidence.
SWAP Rate Movements
SWAP rates have eased slightly over the past month. Two-year SWAPs are now at 3.40%, down from 3.48%, a reduction of 0.08%. Five-year SWAPs have also decreased to 3.55%, down from 3.64% previously, a 0.09% decrease. While these changes aren’t dramatic, they pave the way for lenders to make small tweaks to pricing. Expect gradual reductions rather than big drops in the short term.
Search thousands of buy to let mortgage rates here >>
2026 Base Rate Predictions
Markets currently expect the Bank of England Base Rate (BBR) to hold at 3.75% in February, with cuts likely later in 2026. Forecasts suggest two reductions before summer, bringing rates closer to 3.5%. For landlords, this means fixed mortgage rates may not fall immediately, but improvements are expected later in the year.
If you’re refinancing soon, securing a deal now and letting your broker monitor for rate drops before completion can help you benefit from any reductions.
Latest Lender Pricing Changes
We’ve seen some interesting tweaks from lenders recently:
- LendInvest has reduced selected five-year fixed rates by up to 0.10%, including products with an 80% loan-to-value ratio. They’ve also adjusted some holiday let rates, making them more competitive for landlords in that niche.
- The Nottingham has cut specific Limited Company rates by up to 0.10%
- Landbay has reduced selected holiday let rates by as much as 2%
- Aldermore has launched limited edition products for portfolio landlords. These include five-year fixed rates starting from 5.17% with no fees, plus free valuations and standard legal work, an attractive option for those managing multiple properties
These changes aren’t sweeping, but they signal lenders are targeting specific property types and borrower profiles to attract business.
Positive Lender Criteria Changes
Good news for landlords!
LendInvest has removed its minimum income requirement across its entire product range. Whether you’re applying for a standard buy to let, Limited Company mortgage, HMO, or multi-unit property, you no longer need to meet a specific income threshold, just earn something.
HSBC has also made changes to its rental calculation for buy to let mortgages, allowing landlords to borrow more against rental income. This could make HSBC an attractive option for those who previously found their affordability limits too restrictive.
Search thousands of buy to let mortgage rates here >>
House Price Trends
Nationwide’s latest report shows:
- UK house price growth slowed to 0.6% year-on-year, down from 1.8% in November. While prices are still rising overall, the pace of growth has clearly weakened.
- Northern Ireland continues to outperform other regions with 9.7% growth in 2025, marking its third consecutive year as the strongest market.
- Affordability pressures, particularly in the South East, are contributing to slower growth, as higher mortgage rates weigh on buyer budgets.
- East Anglia saw a decline of 0.8%, making it the weakest region.
- The average UK house price now stands at £271,068.
For landlords, this mixed picture presents opportunities. While selling remains challenging, especially for those offloading buy to let properties, investors looking to expand portfolios may find attractive deals before prices start edging up later in the year.
Read Nationwide’s full report >>
Your Commonly Asked Questions, Answered
We often get asked:
Can I live in a property with a buy to let mortgage?
No. Doing so would breach the terms and conditions of your mortgage. If the lender discovers this, they could demand immediate repayment of the loan.
Can I rent out my residential property without changing the mortgage?
Usually, yes, with lender consent. Most lenders will grant “consent to let” for a small fee (often around £100). However, they may not allow you to switch to interest-only or borrow additional funds. When your fixed rate ends, some lenders won’t offer a new deal, meaning you may need to refinance onto a buy to let mortgage.
Can I buy through a Limited Company and live in the property?
Generally no. Lenders view this as a regulated transaction because you’d be paying rent to your own company, which affects affordability assessments. The only exception is if you buy a multi-unit property and occupy less than 40% of it, for example, living in one flat within a block of five.
Visit our FAQ’s Page for more answers >>
Our Upcoming Inheritance Tax Webinar
Estate planning is a big concern for many landlords. We’re hosting a webinar with a tax advisor and a lender to answer your questions on inheritance tax, structuring portfolios, and what happens to mortgages if someone passes away.
Get in touch and share your questions so we can make this webinar as useful as possible.
Next Steps
Need tailored advice? Speak to an experienced mortgage broker who understands the complexities of buy to let lending. The right strategy now can protect your position and maximise returns in the year ahead.
call our experts on 0345 345 6788 or submit an enquiry here to see how we can help.
