Several of the UK’s leading buy-to-let lenders have cut their headline mortgage rate to below 3%.
One lender has introduced widespread reductions across its buy-to-let product range, with a standout two-year fixed rate now available at 2.99%. Its primary aim is to boost activity in the private rented sector. Whilst we welcome this as a positive signal for landlords, their most competitive rates come with substantial arrangement fees. Buy to let rates are down month on month with the best buy 75% LTV 5 year fixed now pricing sub 4% for the first time since September 2022.*
In a bid to stand out, another major buy-to-let provider has announced a fresh round of rate cuts across its buy-to-let range, including both purchase and remortgage deals. With two-year fixed rate from 2.89% for green purchases at 65% LTV and remortgages, their five-year fixed rate is now 3.99% at 50% LTV. **
These changes reflect a broader trend of lenders sharpening their pricing to attract both new and existing landlords—especially those considering remortgaging or expanding their portfolios. Landlords have more mortgage options than ever, with over 4,000 buy-to-let deals now on the market. Average buy-to-let mortgage rates have reduced significantly over the course of the last year. During the last quarter of 2024, the average rate was 4.28%, down from 4.40% in the previous quarter and from 5.59% in quarter 4 of 2023.***
There has been a noticeable uplift in first-time landlord applications, as falling mortgage rates begin to draw new investors into the market. The analysis of the latest industry data shows that there were some 52,648 buy-to-let loans issued during the final three months of 2024, marking a 7.7% increase on the previous quarter and the highest total seen since the start of 2023.****
We’ve also seen more mainstream lenders expand their product offering to now include different sectors of the BTL market, such as those who own their property via a ltd company structure or have more complex requirements such as House Multiple Occupancy (HMO) properties or Multi unit blocks. With rental yields and profitability the main goal for a number of landlords, diversification of their portfolio can add many benefits.
Stephanie Daley, Director of Partnerships at mortgage advisor, Alexander Hall, commented:
“We’ve seen an increasingly positive picture emerge with respect to those maintaining and growing their portfolios. The number of buy-to-let loans issued and the value of these loans has increased substantially over the course of last year, with continued growth forecast for 2025, and we’ve also seen a 14% increase in the number of rental listings reaching the market.*****
This increase in buy-to-let investor activity is being largely driven by those looking to remortgage, but we’ve also seen an increase in new investment and it’s clear that the improvements to buy-to-let mortgage rates are helping to drive confidence across the sector.
Where BTL rates have dropped this has helped to improve affordability and maximum loans available to new and existing landlords. For those who have been tied in to having to take a product transfer in the past because of affordability restrictions, now is a good time to review the whole market again”
If you’re a landlord looking to improve on your rental yields or considering adding to your portfolio, you can see all the current best BTL mortgage deals and company BTL deals. To talk to one of our mortgage advisers about your options, call us on 08000 38 37 36 or book an appointment today.
* Maximum fee capped at £4,000 to give a fair comparison of rate. There are rates available at lower interest rates but the associated product fees of up to 9.99% can negate the benefit of the lower rate, especially in a high value property market.
** Twenty7tec, published June 2025
*** Moneyfactscompare, published June 2025
**** The Negotiator, published May 2025
***** Foxtons data, published April 2025
