Landlords also face shrinking choice and looming regulatory costs
Buy-to-let fixed mortgage rates have risen sharply since the start of March 2026, with market volatility linked to unrest in the Middle East, according to price comparison website Moneyfactscompare.co.uk.
The average two-year buy-to-let fixed rate has moved to its highest point in a year, last seen in February 2025 at 5.40%. The average five-year equivalent is at a two-year high, previously recorded in January 2024 at 5.91%.
Moneyfactscompare.co.uk said the higher rates are increasing annual repayments for borrowers taking a two-year fixed deal. On a £250,000 loan over 25 years, the cost is now about £1,100 a year higher than it was at the start of March 2026.
Product availability has also tightened. Total buy-to-let choice across fixed and variable deals has fallen by about 1,300 products since early March, bringing the market close to levels last seen when options dipped below 5,000 in November 2025.
| Buy-to-let market analysis | |||||
|---|---|---|---|---|---|
| Product numbers | Mar-24 | Mar-25 | Sep-25 | Mar-26 | 26-Mar-2026 |
| BTL product count (fixed and variable) | 2,844 | 3,746 | 4,597 | 5,660 | 4,332 |
| BTL product count - 80% LTV | 334 | 426 | 523 | 643 | 489 |
| BTL product count - 75% LTV | 1261 | 1,773 | 2,082 | 2,416 | 1,743 |
| BTL product count - 60% LTV | 191 | 191 | 255 | 272 | 204 |
| Average rates | Mar-24 | Mar-25 | Sep-25 | Mar-26 | 26-Mar-2026 |
| Two-year fixed rate BTL all LTVs | 5.51% | 5.24% | 4.88% | 4.66% | 5.29% |
| Two-year fixed rate BTL at 60% LTV | 5.22% | 4.77% | 4.31% | 4.08% | 4.93% |
| Two-year fixed rate BTL at 75% LTV | 5.53% | 5.20% | 4.87% | 4.66% | 5.28% |
| Two-year fixed rate BTL at 80% LTV | 6.24% | 5.89% | 5.54% | 5.17% | 5.83% |
| Five-year fixed rate BTL all LTVs | 5.51% | 5.44% | 5.21% | 5.05% | 5.63% |
| Five-year fixed rate BTL at 60% LTV | 4.84% | 4.66% | 4.43% | 4.24% | 4.91% |
| Five-year fixed rate BTL at 75% LTV | 5.53% | 5.46% | 5.24% | 5.07% | 5.65% |
| Five-year fixed rate BTL at 80% LTV | 6.18% | 5.89% | 5.67% | 5.49% | 6.11% |
| Source: Moneyfactscompare.co.uk | |||||
“Soaring borrowing costs will cause pain to landlords this year, as they join millions of consumers facing higher mortgage repayments,” said Rachel Springall (pictured right), finance expert at Moneyfactscompare.co.uk. “This is terrible news, as rising costs could lead to higher rental payments for tenants, or a drop in the pool of properties available for rent if landlords decide enough is enough and sell off their portfolio.
“The unrest in the Middle East has caused absolute mayhem in the residential mortgage market, buy-to-let rates are also being hiked, and hundreds of deals have been pulled from sale.
“The positive sentiment entering 2026 has been shattered, and landlords not only have to face higher borrowing costs, but also prepare themselves for the Renters’ Rights Act, which comes into effect at the start of May 2026.”
Springall also noted that landlords might need extra borrowing to fund refurbishments and energy-efficiency upgrades to meet the Decent Homes Standard and EPC requirements.
“Landlords’ costs will escalate further, as they are expected to invest up to £10,000 as a spending cap to reach an EPC rating of ‘C’ by October 2030, subject to the value of a property,” she said. “If that EPC rating is not achieved, landlords could face substantial fines, as the rules apply to all tenancies.
“Seeking advice will be essential for new or existing landlords to keep on top of the changing legislation and how rising costs and interest rate rises will hit their profit margins.”
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