In this week’s update, Jeni explores why SWAP rates are rising again, driven by political uncertainty and market volatility, and what this means for mortgage pricing. She also highlights key Renters’ Rights Act deadlines and breaks down the growing financial case for EPC upgrades ahead of 2030.
Here’s your weekly MFB News update from 13th May 2026.
If you’re a landlord keeping an eye on mortgage rates, the past couple of weeks have been a sharp reminder of just how quickly things can change.
We’d started to see a period of relative stability in SWAP rates, with both 2-year and 5-year money hovering around the 4% mark. However, local council election results sparked questions around Keir Starmer’s leadership and wider government stability, unsettling the gilt markets. That volatility has quickly filtered through into SWAP rates, pushing them back up by roughly 0.25% in a matter of days.
Why does that matter?
SWAP rates are the foundation of fixed-rate mortgage pricing. When they increase, lenders’ costs rise, and those increases are typically passed to borrowers shortly after.
Will Mortgage Rates Rise Again?
Interestingly, lenders had only just started trimming rates. Several big names reduced pricing across buy to let mortgages, including cuts of up to 0.25%, and even 0.5% in some cases on 2-year fixes.
But here’s the reality: lender pricing often lags market movements by a few days.
With SWAP rates now climbing again, it’s highly likely we’ll see lenders pull products or increase rates in the coming weeks. For landlords planning a refinance or purchase, this creates a familiar but important message: timing matters.
Why Securing a Rate Still Makes Sense
During periods of volatility, one of the most effective strategies is also one of the simplest: secure a rate early.
Most lenders will allow you to switch to a better deal if rates improve before completion, often without penalty. That means booking a rate now can act as a safety net against further increases, while still giving you flexibility if the market improves.
For landlords considering their portfolio plans, refinancing, or a new purchase, now is the time to review your options.
>> Search and compare thousands of mortgage rates
Base Rate Expectations: What’s Ahead?
Given the market volatility and with so many changes happening in real time, expectations for future Bank of England Base Rate movements vary amongst money market experts.
Some market forecasts are modelling more extreme scenarios, with the Base Rate potentially rising as high as 5.25% by the end of the year if inflationary pressures persist or geopolitical conflicts worsen. This represents a clear “worst-case” outlook, but it highlights just how uncertain the current environment is.
Our view is more measured. Rather than a sharp spike, we expect one or two further Base Rate increases this year, followed by a period of stability, and then gradual reductions further down the line as conditions improve.
For landlords, the key takeaway is that we’re still operating in a market where rates could edge upward before they come down, so planning with that in mind remains the sensible approach.
Renters’ Rights Act: A Deadline You Can’t Miss
The first phase of the Renters’ Rights Act was implemented on the 1st of this month, and with it, there are now some important steps all landlords have to take.
Landlords have until 31st May to issue the official Renters’ Rights Act Information Sheet to each named tenant across all rental properties. Failure to do so could result in fines of up to £7,000.
>> Follow our step-by-step guide to preparing tenants here.
If you let to students, there’s an additional requirement: you must formally confirm tenancy end conditions if you plan to rely on specific possession grounds. Missing this step could remove your ability to use them later.
In short, this isn’t one to leave until the last minute.
>>Discover more on the Renters’ Right Act here
EPC Changes: 2030 Might Be Closer Than You Think
Looking slightly further ahead, EPC regulations remain one of the most significant structural changes facing the buy to let sector and one that landlords can’t afford to ignore.
By 2030, all rental properties will need to achieve EPC band C or above, unless exempt. However, the key shift here is the change to the cost cap for exemptions.
Landlords will be required to spend up to £15,000 on energy improvements before they’re able to claim an exemption. For many properties, particularly older terraces or lower-value stock in northern markets, that level of investment can represent 10% or more of the property’s value.
In practical terms, this means fewer landlords will be able to rely on exemptions. Instead, most will need to actively invest in upgrades such as insulation, heating systems, or glazing improvements to remain compliant.
For portfolios with older or less energy-efficient properties, this isn’t just a future consideration; it’s something that needs planning now. These types of properties are often the most expensive and complex to upgrade and leaving it too late could create both financial pressure and limited options.
The key takeaway is simple: this is no longer just about regulation. It’s about long-term portfolio strategy, cost management, and ensuring your properties remain lettable in a tightening regulatory environment.
>> Read more about meeting new EPC targets and regulations here.
Do EPC Improvements Actually Pay Off?
The good news is that improving energy efficiency isn’t just about compliance; it’s increasingly about returns.
Recent data shows that properties rated A or B can
- Achieve over 8% higher rents than comparable D-rated homes
- Command a 12%+ premium in property value in the buy to let market
In some regions, particularly across the North and Midlands, the uplift in rental income and capital value can mean upgrades pay for themselves within a relatively short timeframe.
That’s a significant shift. Energy efficiency is no longer just a regulatory hurdle, it’s becoming a core part of buy to let investment strategy.
What Should Landlords Be Doing Now?
There are three clear priorities for landlords in the current market:
- Review your mortgage position
If you’re refinancing in the next 6 months, consider securing a rate sooner rather than later - Stay compliant with new legislation
The Renters’ Rights Act deadlines are immediate and carry real financial penalties. - Start planning for EPC upgrades
Whether or not you act now, having a strategy in place will put you ahead of the curve as 2030 approaches.
The buy to let landscape continues to evolve, through both market forces and regulation. Staying informed and acting early isn’t just about avoiding risk; it’s about protecting and enhancing the long-term performance of your portfolio.
If you’d like tailored advice on your buy to let mortgage options or property strategy, it’s always worth having that conversation sooner rather than later.
Speak to an expert
Whether you're approaching the end of your fixed rate, looking to raise capital for EPC improvements, 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.
