Buy to Let mortgage rates: what's happening?

We have seen rates on fixed and variable Buy to Let (BTL) UK mortgages reduce slightly in April 2025. However, due to the volatility of the market, we cannot be sure what is in store for mortgage rates going forward.

How to get the best Buy to Let mortgage rate?

Looking online can give you a bit of an idea of what is happening within the mortgage market, but this isn’t guaranteed to show all of the deals that are available. In order to get the best deal, we would highly recommend getting advice. Some deals are only available through mortgage brokers.

Are Buy to Let mortgage rates going to fall?

We are anticipating a reduction in Buy to Let mortgage rates due to the expectation that interest rates will be cut later this year. However, rates may remain raised due to high inflation which was 2.6% in March, 0.6% above the Bank of England target rate of 2%.

Options as a Landlord

With the UK Buy to Let mortgage rates a lot higher than they have been, as a landlord, you may dealing with increased costs. You do have some options:

• Remortgage
  Make sure you are on the right mortgage, to do this you can speak to a mortgage broker who can provide free advice and help you to decide what type of BTL mortgage suits you. For example, you might want to go for a fixed-rate meaning you will be paying a set amount for a set period irrespective of rate increases or decreases. Alternatively, you may feel a variable rate mortgage is more suited as you will benefit if rates were to reduce.
• Increase rent
  You may want to consider reviewing how much you are charging your tenants on your rental property if your mortgage is costing you more. Remember, you must follow the rules in the agreement that you have with your tenants if you plan on increasing rent. 
• Think about selling up
  If you are finding you Buy to Let mortgage too costly, you may find the best option is to sell the property. Interestingly, 30% of landlords have either sold or listed their rental properties for sale over the past year (Source: Property Industry Eye, Feb 2025).

If you choose to take this route, you can either:

-        Give your tenants notice that you want them to vacate the property – you must ensure you follow the rules around this. Remember, when your tenants leave, you’ll be required to pay the mortgage without getting any rent during this period.

       Sell with sitting tenants – some buyers may be looking for a property as a Buy to Let property. Bear in mind that this could limit prospective buyers and impact how much you sell for.

• Wait and see what happens
  

  If your Buy to Let mortgage rate hasn’t increased yet, it may be worth saving as much as possible for when your rate does increase. Alternatively, you may feel that you can manage the financial hit of a rate hike on a temporary basis, and protect your tenants instead. Good tenants are hard to come by, therefore it may be in your interest to cover the extra to keep them happy and taking care of the property.

  Mortgage Required are Buy to Let specialists and have been working with professional landlords, first time investors and accidental landlords helping them to maximise profitability and building their portfolios since 2001. Get in touch for free advice 01628 507477.