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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.
Buy-to-let (BTL) mortgage rates have been falling for more than a year, with the average rate at its lowest figure since the summer of 2022.
The downward trajectory has been driven by four cuts to the Bank of England base rate over the past 12 months, reducing it from 4.75% to 3.75%.
But could conflict in the Middle East and a new threat of inflation change this trend and alter forecasts or further base rate cuts in 2026?
Here, Which? explains what's happening to BTL rates and reveals the cheapest deals currently on the market.
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The average BTL mortgage rate has fallen every month since February 2025, with larger drops in the first few months of 2025.
We've found that in the last month the best buy-to-let mortgage rates have remained the same or very slightly dropped, depending on your loan-to-value. However, the ongoing conflict in the Middle East means that rates are likely to slightly rise over the coming weeks.
The March average, 4.84%, is lower than the 5.53% recorded in 2024, but well above the 3.25% recorded in 2021.
This means the term length of your last fixed-rate deal will dictate whether you'll be better or worse off when you come to remortgage your property.
Landlords coming off a two-year fixed-rate mortgage will likely find their mortgage costs fall. However, those coming off a five-year fixed-rate mortgage will see their costs rise.
The graph below shows what's happened to fixed BTL mortgage rates over the past three years.
At the start of 2026, lenders expected buy-to-let rates to continue falling as the Bank of England base rate moved lower.
The base rate was held at the most recent Monetary Policy Committee (MPC) meeting on 5 February. Economists had previously expected a cut at the March meeting, particularly after February’s very close vote, when the MPC split 5-4 in favour of keeping rates unchanged.
However, conflict in the Middle East and the risk that rising energy prices could push inflation higher have made the outlook less certain.
In the short term, lenders may edge rates up slightly, as economic uncertainty can increase the cost of offering loans.
Nicholas Mendes of broker John Charcol says the message for anyone needing a new deal, particularly landlords coming to the end of a fixed rate, is clear: 'Don’t sit on it.'
If tensions ease, rates could still follow the downward path many expected earlier in the year. But the current international volatility makes it difficult to predict what will happen next.
When we last checked Moneyfacts data on 5 March, there were 5,529 BTL mortgages on the market. Most 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 | 2.49% | 7.74% | Arrangement 3% Advance |
| 75% | The Mortgage Works | 2.63% | 8.24% | Arrangement 3% Advance |
| 80% | CHL Mortgages | 3.35% | 8.74% | Arrangement 5% Advance |
Source: Moneyfacts. Rates correct as of 5 March 2026. Deals with up-front fees of more than 5% of the amount borrowed and 'green' deals aren't included.
| 60% | The Mortgage Works | 3.54% | 7.74% | Arrangement 3% Advance |
| 75% | The Mortgage Works | 3.57% | 8.24% | Arrangement 3% Advance |
| 80% | The Mortgage Works | 4.64% | 8.24% | Arrangement 2% Advance |
Source: Moneyfacts. Rates correct as of 5 March 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 13% 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 will come 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.
The table shows the new tax rates.
| Brand | Tax rate currently | Tax rate from April 2027 |
|---|---|---|
| Basic rate | 20% | 22% |
| Higher rate | 40% | 42% |
| Additional rate | 45% | 47% |
