With a constant stream of economic data, shifting lender strategies and a major legislative overhaul on the horizon, it’s no surprise that many landlords are feeling a little uncertain about the year ahead. In this week’s breakdown, we explore what’s happening in the mortgage market, from SWAP rate movements to the abolition of Section 21 and what it all means for you.
Here’s your weekly MFB News update from 4th February 2026.
SWAP Rates: Why They’re Rising Again
SWAP rates have crept higher over the past fortnight, reversing the gentle downward movement we saw earlier in the year. Both 2 and 5‑year SWAP rates are now above where they sat last month.
Three key forces are driving this shift:
1. Stronger‑than‑expected economic data.
2. Fewer predicted rate cuts in 2025.
3. Inflation creeping above expectations.
All of this has lifted SWAP rates, which, in turn, raise lenders' cost of funds. And, as ever, when SWAP rates move, mortgage pricing follows.
Lender Pricing: A Confusing Week of Ups and Downs
Given the SWAP rate movements, the past week has produced a mixed bag.
Lenders reducing rates:
- Coventry Building Society lowered some Limited Company buy to let rates by 0.15%.
- Fleet Mortgages reduced pricing by up to 0.10% across selected 2‑year products.
Lenders increasing rates:
- Santander increased residential rates by up to 0.04%.
- Foundation increased selected products by up to 0.10%.
- Precise and Kent Reliance withdrew all limited‑edition 5‑year fixes.
Search thousands of buy to let mortgage rates here >>
Section 21 Abolition: What Landlords Should Expect
The Government will abolish Section 21 on 1st May 2026, meaning you will no longer be able to regain possession without giving a specific reason. Instead, all evictions will be handled through an expanded Section 8 system.
Under the new rules, you will still be able to regain possession for key reasons, including rent arrears, antisocial behaviour, property damage, selling the property, or needing to move in. Still, evidence will be required for every case.
A few essential points for landlords:
- Accelerated (no‑hearing) possession orders will be removed, so all cases will go through the courts.
- Three months’ arrears will be required before starting eviction for non‑payment.
- Student HMO landlords will have a specific ground to regain possession for the next academic year.
- Thorough paperwork and record‑keeping will become crucial, as missing documents could delay or block a possession claim.
The key takeaway is simple: the process is still possible, but it will be slower, more formal, and require stronger documentation.
Visit our Renter’s Rights Hub to find out more >>
FAQ: When Should Landlords Remortgage?
A good rule of thumb is to start the remortgage process around three months before your current rate ends. This gives enough time for underwriting, valuation and legal work, and helps you avoid slipping onto a lender’s (usually much higher) Standard Variable Rate (SVR).
Starting early also gives you space to compare whether a product transfer with your current lender is competitive, or whether a full remortgage could save you money, something that’s increasingly common for Limited Companies and portfolio landlords. Many lenders also allow you to secure a rate early and switch to a cheaper one if pricing improves before completion, which can be particularly helpful when SWAP rates are rising.
Read our blog to discover if a PT or remortgaging is right for you >>
Next Steps
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