As we approach the end of the year, many landlords are asking the same questions: Where are mortgage rates heading? What’s changing in lending criteria? And how will new rental rules affect me? Jeni shares her top tips and essential insights to help you navigate the current market.
SWAP Rates & Mortgage Pricing: What’s Happening?
Following the Autumn Statement, SWAP rates and Gilt yields have remained largely stable. Two-year SWAPs sit at 3.47%, almost unchanged from last month, and five-year SWAPs hover around 3.58%. Compared to a year ago, these figures are lower, which is positive news for landlords.
So, what does this mean for mortgage pricing? In short, fixed rates haven’t shifted significantly. A few lenders, such as Virgin Money, have made minor tweaks, reducing some lower loan-to-value (LTV) products by 0.1%, but widespread repricing hasn’t happened yet. Expect some movement in the coming weeks as lenders seek to boost year-end business, but don’t anticipate dramatic rate cuts before Christmas.
Search thousands of buy to let mortgage rates here >>
For landlords considering their next move, it’s worth noting that waiting for the Bank of England’s next Base Rate decision may not pay off. Markets have already priced in a 0.25% reduction, so any change is unlikely to make a big difference to fixed rates. In fact, if the Base Rate doesn’t drop, SWAP rates could tick up, so acting sooner rather than later might be wise.
Lender Criteria Updates: More Flexibility for Landlords
Three specialist lenders have introduced positive changes in the last week:
- MT Finance has removed minimum income requirements for most buy to let applications. As long as the case makes sense financially, lower-income applicants can now be considered. First-time buyers and first-time landlords still face minimum income rules, but this is a big step forward for experienced investors.
- Fleet Mortgages has lowered its minimum age requirement for applicants from 25 to 21. While most landlords focus on maximum age limits, this change opens the door for younger investors to enter the market sooner.
- MT Finance now accepts first-time landlords and first-time buyers for small HMOs (up to six bedrooms), which could offer a great opportunity for those looking to diversify.
Pets in Rental Properties: What Landlords Need to Know
Under the Renters’ Rights Act, coming into effect in May, landlords can no longer issue blanket bans on pets. Instead, each request must be considered on a case-by-case basis, and you must respond in writing within 28 days.
- Reasonable grounds for refusal include:
- Another tenant has an allergy.
- The property is too small for the pet(s).
- The pet is illegal to own.
- Leasehold restrictions prohibit pets.
However, personal dislike of pets, previous bad experiences, or general concerns about damage are not valid reasons. Assistance animals, such as guide dogs, cannot be refused.
Reviewing your tenancy agreements now and considering options such as pet damage insurance can help you protect your investment in the long run.
Visit our Renters’ Rights Act hub for more information on upcoming changes >>
House Price Data: Why the Numbers Differ
If you were to research house price data, you would find that many different datasets offer varying results and predictions for the market, which can be confusing. Here’s a brief explanation of why the numbers can differ depending on where you look:
- Nationwide & Halifax base their figures on mortgage approvals, reflecting sentiment but excluding cash buyers
- ONS (Office for National Statistics) & Land Registry use completed sales data, offering the most accurate picture
- Rightmove tracks asking prices, indicating seller confidence
- Zoopla combines listings, mortgage data, and modelling for a blended view
For landlords planning purchases or refinancing, ONS data is generally the most reliable.
Limited Company Buy to Let: Still Dominating
In our ‘Meet the Lender’ video with Leeds Building Society, Business Development Manager Siobhan McMeneman shared some interesting data around Limited Company activity.
According to McMeneman, around 60–70% of buy to let purchases now use Limited Company structures, driven by the tax advantages on offer. The sentiment from lenders is that the market very much expects Limited Company investment to continue growing in popularity in 2026.
Watch our full video with Leeds Building Society here >>
Final Thoughts
The buy to let sector continues to show resilience, supported by steady mortgage rates, lender flexibility, and clear guidance on navigating new legislation. For landlords planning to purchase or refinance, acting now could help you secure competitive terms for the new year.
Speak to an expert
If you’re ready to explore your options, our team of expert mortgage brokers are here to help. To get started, call our experts on 0345 345 6788 or submit an enquiry here to see how we can help.
