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Sam covers personal finance topics, from the best savings rates to the reasons mortgage lenders say no. He enjoys crunching the numbers to help consumers get ahead.
Following a year of falling rates, the cost of buy-to-let (BTL) mortgages have significantly increased since the start of March.
Conflict in the Middle East has triggered the biggest rise in mortgage rates since the 2022 mini-budget, prompting experts to rapidly rethink their forecasts for the next few years.
Rates have now stablised following the initial surge, but remain far more costly than the best deals available earlier in the year.
Here, Which? explains what's happening to BTL rates and reveals the cheapest deals currently on the market.
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Rates jumped up between the start of March and April. As a result, by early April, 43% of all new buy-to-let lending was agreed at rates of 5% or above, up from just 8% in January, according to Hamptons analysis of Connells group data.
Moneyfacts data also shows the rate increases during this period. In March the average fixed-rate was 4.84%, at the start of April it was 5.59%.
This means the term length of your last fixed-rate deal will dictate how your new rate compares when you come to remortgage. For those coming off a five-year fix, you should prepare for a potentially significant increase in your monthly repayments.
For example, Hamptons analysis found that landlords coming off two-year fixed-rate deals in April saw monthly mortgage payments rise by 3.4%. Meanwhile, those reaching the end of five-year deals taken out in 2021 have seen payments rise by 28.5%.
The graph shows what's happened to fixed BTL mortgage rates over the past three years.
At the start of 2026, lenders expected BTL rates to continue to drift down throughout the year. These forecasts have been rapidly updated since the conflict in the Middle East began.
Experts are now predicting the base rate will remain at 3.75% during 2026. This should mean a small drop to rates, as during late March experts forecast one or two base rate increases.
Of course, these forecasts are subject to change if there is further conflict in the Middle East.
When we last checked Moneyfacts data on 27 April, there were 4,764 BTL mortgages on the market.
In the first three months of 2026, this figure was consistently above 5,000 and there were even 5,529 BTL mortgages available last month. This demonstrates that market volatility has not just impacted rates but also the number of products available.
Most BTL mortgages are available to landlords with deposits of at least 25%, although there are some higher loan-to-value deals.
Looking at average rates gives us a general idea of what's happening in the market, but when you're taking out a mortgage, you'll want to get the cheapest deal you can.
The tables show the lowest initial rates currently available on two-year and five-year fixed-rate buy-to-let mortgages.
| 60% | The Mortgage Works | 3.44% | 7.74% | Arrangement 3% Advance |
| 75% | Vida Homeloans | 3.47% | 8.64% | Arrangement 5% Advance |
| 80% | ModaMortgages | 3.7% | 8.74% | Arrangement 5% Advance |
Source: Moneyfacts. Rates correct as of 27 April 2026. Deals with up-front fees of more than 5% of the amount borrowed and 'green' deals aren't included.
| 60% | Birmingham Midshires Solutions | 4.32% | 8.09% | Arrangement 3% Advance |
| 75% | YBS Commercial Mortgages | 4.45% | 8.99% | Arrangement 5% Advance |
| 80% | The Mortgage Works | 5.19% | 8.24% | Arrangement 2% Advance |
Source: Moneyfacts. Rates correct as of 27 April 2026. Deals with up-front fees of more than 5% of the amount borrowed and 'green' deals aren't included.
These rates are significantly more attractive, but there are drawbacks. The cheapest deals here have substantial upfront fees, which you'll need to factor in when comparing overall costs.
For example, the 60% LTV mortgage with the lowest rate has a fee of 3% of the amount you borrow, so if you borrow £200,000, you'll need to pay a fee of £6,000.
Fee-free BTL mortgages are less common, making up just 14% of deals, but some deals do have lower upfront fees of around £999-£1,500.
The Renters' Rights Act will bring changes for landlords over the coming years. The first of these changes are coming into force on 1 May 2026. Head to our round-up to find out all about the new requirements and when additional changes will be implemented.
You can also check the government information page, which sets out guidance for landlords and letting agents.
The Chancellor, Rachel Reeves, also announced a change for landlords in the Budget, with tax rates on income from property rising by two percentage points.
The new rates will apply from April 2027 and will increase the tax paid by basic, higher and additional rates of property income tax in England, Wales and Northern Ireland. Scotland sets its own income tax rates
The table shows the new tax rates.
| Band | Tax rate currently | Tax rate from April 2027 |
|---|---|---|
| Basic rate | 20% | 22% |
| Higher rate | 40% | 42% |
| Additional rate | 45% | 47% |
