As we step into 2026, UK buy to let landlords face a market shaped by stable SWAP rates, cautious lender pricing, and evolving tenant demands. Here’s what you need to know to make informed decisions this year.
SWAP Rates: Stability Despite Base Rate Cuts
The recent 0.25% Base Rate reduction in December sparked hopes for cheaper mortgages. However, SWAP rates, the key driver of fixed-rate pricing, have barely moved. Two-year SWAPs hover around 3.49%, down by 0.03% and five-year rates sit near 3.64%, a slight increase of 0.02%. Therefore, lenders’ cost of funds remains unchanged, meaning significant rate drops are unlikely. Competition, rather than market fundamentals, will drive any reductions you see.
Find your next BTL mortgage rate here >>
Mortgage Pricing Outlook for Buy to Let
To provide a clear picture of current pricing, we’ve used an average loan size of £262,500, which is close to the typical borrowing amount we see at MFB, and assumed a 75% loan-to-value (LTV). This provides a realistic benchmark for most buy to let scenarios.
Here’s what the numbers look like:
Personal borrowing:
- 2-year fixed rates start from 3.29% with a £4,000 fee.
- 5-year fixed rates start from 3.98% with a £1,499 fee.
- Trackers from 4.49% with a £995 fee.
- 2-year fixed rates start from 4.75% with a £499 fee.
- 5-year fixed rates start from 4.51% with a £4,000 fee.
- Trackers from 4.09% with a 3% arrangement fee.
Why these figures matter:
We calculate the “best” rate based on overall cost over the deal period, not just the headline interest rate. This includes interest plus all arrangement fees. Some lenders offer lower interest rates but with high fees, which can make them less competitive in the long run. Conversely, deals with lower fees often have slightly higher interest rates.
Your ideal product depends on your priorities, whether you want the lowest monthly payment, minimal upfront fees, or the most cost-effective deal over the term.
Compare buy to let mortgages >>
Global Factors: Trump’s Oil Gambit and Market Volatility
Geopolitical events matter, even for UK landlords. Trump’s intervention in Venezuela has raised concerns about oil supply and inflation. While short-term impacts are limited, prolonged instability could influence SWAP rates and Bond yields, affecting mortgage pricing. The takeaway? Lock in rates early. If markets turn volatile, securing a deal now protects you from future hikes.
Landlord Insights: What’s Trending in 2025
One of the most common questions we get from landlords is: “What are other landlords doing right now, and why?” To answer that, we’ve analysed search trends and market behaviour to uncover the priorities shaping landlord decisions in 2025.
Our research shows landlords are focused on:
Renters’ Rights Act compliance
Landlords are searching for guidance on new obligations, database requirements, and enforcement powers. Staying compliant is a top priority to avoid penalties.
Visit out Renters’ Rights Hub >>
Rental demand hotspots for 2025
Searches show that landlords want to invest where tenant demand is strongest, with cities like London, Birmingham, and Edinburgh being preferred for flats, and Oxford, Leeds, and Bolton being preferred for houses.
Discover the regions with the highest rental yields >>
Tenant preferences and investment strategies
Landlords are researching the features that tenants value most, including pet-friendly homes, gardens, garages, furnished properties, and even “bills included” options, to keep properties competitive and reduce voids.
Smart landlords are aligning investments with these trends to maximise occupancy and returns.
Find your next BTL mortgage rate here >>
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.
