As mortgage rate volatility eases, two key shifts are emerging in the market. With new product transfer options from one lender and a growing divide in landlord outlook, here we explore the latest changes in the buy to let market.
Here’s your weekly MFB News update from 29th April 2026.
The past few years have been challenging for UK buy to let landlords. Mortgage rate volatility, shifting lending criteria and rising costs have made long-term planning increasingly difficult.
However, recent developments suggest that parts of the market are stabilising. While conditions remain complex, clearer trends are emerging across mortgage pricing, lender behaviour and rental income forecasts, creating opportunities for landlords who understand how these pieces fit together.
In this update, we share:
- Where mortgage rates and SWAP rates currently sit
- A significant lender change affecting product transfers and further advances
- What UK rent trends and regional forecasts mean for landlord strategy
Mortgage Rates and SWAP Rates: A Calmer Backdrop
SWAP rates, which drive the pricing of fixed rate mortgages, continue to move, but volatility has reduced noticeably in recent weeks. 2 year and 5 year SWAP rates remain higher than a year ago, yet the pace and scale of weekly fluctuations have slowed.
For landlords, this matters because:
- Lenders are making fewer abrupt pricing changes
- Lenders are withdrawing mortgage products less frequently
- Borrowers can assess options without dealing with constant repricing
While stability does not automatically mean cheaper mortgages, it does allow for more considered decision making around refinancing, fixed rate selection and tracker products.
Furthermore, the money markets are not expecting a change to the Base Rate in this week’s MPC meeting, meaning fixed mortgage rates are unlikely to shift significantly in the short term unless economic expectations move materially. Looking forward, the broader expectation remains that rates will continue to fall, but you should not rely on this happening quickly.
Understanding Current Buy to let Mortgage Pricing
At present, buy to let mortgage pricing varies widely depending on loan to value, borrowing structure and fee tolerance.
For a typical portfolio or single property landlord at around 65% loan to value, available options may include:
- 5-year fixed rates with moderate arrangement fees
- 2-year fixed rates offering lower headline rates but higher upfront costs
- Very low interest rates paired with substantial percentage-based fees
This highlights an important distinction: the lowest interest rate does not necessarily result in the lowest total cost or the best cashflow outcome.
Some landlords, particularly those with lower leverage, are prioritising monthly affordability and cashflow, even where this involves adding higher fees to the loan. Others are favouring longer fixed terms in exchange for repayment certainty.
Limited Company buy to let borrowers are also seeing improved options, particularly in tracker rate options. These rates may be attractive for those who believe the Base Rate will fall over time and are comfortable with interest rate movement.
Search and compare thousands of buy to let mortgage rates here >>
A Smarter Approach to Product Transfers and Further Advances
We’ve seen a significant change in criteria for product transfers combined with additional borrowing.
Traditionally, landlords reaching the end of a fixed rate faced an awkward choice. Completing a product transfer first and applying for a further advance afterwards carries real risk, as rental affordability is often assessed based on the product already in place. In some cases, landlords would secure a new rate yet be declined for the extra borrowing they needed.
As a result, many felt forced into full remortgages, even where they would have preferred to stay with their existing lender.
A leading buy to let lender has now introduced solutions that allow product transfers and further advances to be agreed simultaneously, with affordability assessed upfront. This approach:
- Reduces risk for landlords exploring their refinance options
- Provides certainty on borrowing capacity
- Avoids unnecessary remortgage costs
- Improves planning for portfolio landlords
While not relevant to every investor, this change is particularly valuable for those of you looking to raise capital or restructure your mortgage debt.
Why a broker is essential to your Product Transfer process >>
UK Rental Income: Growth Continues, Momentum Slows
Rental growth across the UK remains positive, but the pace has eased compared to recent years. Current data suggests average rent increases of around 3–3.5% year on year, with London closer to 1–2% and some regional areas seeing stronger gains.
Several factors continue to support rental values:
- Reduced supply as landlords exit the market
- Persistent tenant demand
- Rising landlord costs, including mortgage interest and compliance
Properties coming to market are still attracting multiple applicants, especially in high-demand regions. That said, tenant affordability constraints are starting to limit how far rents can rise.
Looking ahead, most forecasts expect annual rental growth to fall toward 2–3%, broadly in line with long-term inflation expectations.
A Clear North–South Divide in Landlord Behaviour
Recent trends show an increasing divide between landlord strategies in different parts of the country.
In the North and Midlands, investment activity remains yield driven. Landlords are focusing on:
- Higher rental yields
- Cashflow positive properties
- HMOs and lower capital values
- Limited Company buy to let structures
These regions now account for a growing proportion of buy to let purchases, reflecting a scale focused investment mindset.
In contrast, landlords in London and the South East are more likely to be reassessing existing portfolios. Common considerations include whether to hold, restructure or exit, particularly in response to taxation, regulation and financing costs.
Despite this caution, tenant demand in southern markets remains exceptionally strong. Continued supply shortages could result in accelerated rent growth over the medium term, with some projections suggesting cumulative increases of 25–30% over 5 years in the most constrained areas.
Why Strategy Matters More Than Ever
The current buy to let market rewards structured planning rather than reactive decision-making.
Mortgage rates may be steadier, but they remain higher than many of you are accustomed to. Lenders are offering more flexible solutions, but rental growth still varies significantly by region.
For landlords, the key questions remain strategic:
- Are your current mortgage structures still working for you?
- Would a product transfer or further advance be more effective than a full remortgage?
- Is your portfolio aligned with regions showing sustainable rental demand?
Clear answers to these questions can materially improve long-term performance, particularly in a market where margins are tighter and mistakes are more costly.
Speak to an expert
Whether you're approaching the end of your fixed rate, looking to raise capital, or want to review your portfolio strategy, our experts can help. We’ll offer you tailored advice to ensure we find you the best rates to suit your needs and help you make fully informed property-investment decisions. Call us on 0345 345 6788 or submit an enquiry here.
