Buy to Let Mortgage Rates 2026 — Updated October 2026
- 5yr fixes from (Molo)
- 5.02%5yr fixes from (Molo)
- lowest 2yr rate, high fee
- 3.24%lowest 2yr rate, high fee
- rental cover tests
- 125%–145%rental cover tests
- Last updated (verified 1 Oct)
- October 2026Last updated (verified 1 Oct)
As of October 2026, buy-to-let 5-year fixes start from around 5.0% (Molo from 5.02% after its 7 September repricing). The lowest 2-year rates, from about 3.2%, carry fees of 3% or more and suit only larger loans. Most landlords compare on total cost and on how much the lender's rental stress test lets them borrow.
Buy to Let Mortgage Rates by LTV and Term — October 2026
Swipe the table sideways to see every column.
| Product | LTV | Best rate (indicative) | Average range |
|---|---|---|---|
| Standard BTL 2yr fix | 55% LTV | 3.51% (Rely) | 3.51%–4.5% |
| Standard BTL 2yr fix | 65% LTV | from 3.24% (Molo Finance, high fee) | 3.24%–4.8% |
| Standard BTL 2yr fix | 75% LTV | ~4.2%–4.8% | 4.2%–5.4% |
| Standard BTL 2yr fix | 80% LTV | ~4.8%–5.5% | 4.8%–6.0% |
| Standard BTL 3yr fix | 65% LTV | 4.17% (BM Solutions) | 4.17%–5.2% |
| Standard BTL 5yr fix | 65% LTV | from 5.02% (Molo Finance) | 5.02%+ |
| Standard BTL tracker | 65% LTV | BoE+1.5%–2.5% (approx 5.25%–6.25%) | Variable |
| HMO / MUFB | 65%–75% LTV | 5yr from c.5.2% | 0.15%–0.60% above standard BTL |
| Holiday let | 65% LTV | 5.69%+ (Keystone) | 5.69%–7.5% |
| Expat BTL (non-resident) | 65%–75% LTV | 5yr fixes from c.5.0% | c.5.0%–6.5% |
| Limited company / SPV BTL | 65%–75% LTV | 5.50%–6.20% | Usually a little above personal-name BTL |
| Portfolio landlord (4+ properties) | 65%–75% LTV | 4.65%–5.65% | Portfolio assessment applies — lender pool narrows |
What moves buy-to-let mortgage rates
LTV
The biggest rate driver — every 5% reduction in LTV typically saves 0.1%–0.3% on the rate. Building a larger deposit or using equity from an existing portfolio to reduce LTV is the most direct route to a lower rate.
Fix term
The lowest 2-year rates, from about 3.2%, carry fees of 3% or more and suit only larger loans; 5-year fixes start from around 5.0%. If you plan to sell within 2–3 years, compare the 2-year options on total cost. If you want certainty and will hold long-term, the 5-year fix provides payment stability.
Property type
Vanilla single-let residential attracts the widest lender choice and best rates. HMOs typically price 0.15%–0.60% above standard BTL; MUFBs, short-term lets, and holiday lets also attract a premium.
Portfolio size
Above 4 mortgaged BTL properties, portfolio landlord criteria apply — lenders assess the full portfolio's rental income, void rates, and gearing rather than just the new application. This can improve or worsen the rate depending on the overall portfolio quality.
Rental coverage
BTL affordability is assessed on whether rental income covers the mortgage payment by 125%–145% at the stress test rate (typically the product rate + 2%, or a minimum stress rate of 5.5%). The coverage ratio can determine the maximum loan amount and indirectly affects which rate bands are accessible.
Company vs personal name
Limited company / SPV BTL rates usually sit a little above personal-name rates (5.50%–6.20% in October 2026). The structural decision should be driven by tax efficiency rather than rate alone.
What a buy-to-let mortgage costs: worked example
- Monthly interest
- £1,255
- Rent needed at 125% rental cover, 5.5% stress rate
- £1,719 a month
- Rent needed at 145% (higher-rate taxpayers)
- £1,994 a month
£300,000 interest-only at 5.02%.
Rates rose in September — lock in today, review before completion
The figures above are indicative and describe the best case. Send your own scenario and we will come back the same working day with terms from the lenders that actually fit it.
- Enquiry type
- Mortgage
- About
- Buy to Let Rates
No upfront fees on loans over £1m.
Enough detail to price it is the amount, the security, the purpose and how you plan to repay. The rest we can fill in on a call.
Whole of market · 130+ lenders · FCA 814533 · Same working day response
Rate context and outlook
The Bank of England held Bank Rate at 3.75% on 17 September 2026, its sixth consecutive hold, but three of nine MPC members voted to raise it to 4.0%. The Committee warned policy may have to tighten if the Middle East conflict persists.
Fixed rates are priced from swap rates, and the 2-year swap rose from 4.26% on 3 September to above 4.70% by mid-month, so most major lenders repriced fixed rates upward two or three times in September. The next decision is on 5 November. If your deal ends in the next six months, securing a rate now and reviewing it before completion is the lower-risk approach.
Reviewed by David Doulton, Director, Doulton Bridging Finance — over 20 years in property finance. Last reviewed 1 October 2026. Doulton Money Ltd t/a Doulton Bridging Finance, FCA No. 814533.
Frequently asked questions
Should I take a 2-year or 5-year BTL fix in 2026?
The lowest 2-year BTL rates, from about 3.2%, carry fees of 3% or more and suit only larger loans, while 5-year fixes start from around 5.0%. The Bank of England held at 3.75% on 17 September with three votes for a rise, so cuts are not the base case. A 5-year fix provides certainty; a 2-year fix suits landlords planning to sell or refinance within 2–3 years. Compare the options on total cost including fees.
What is an HMO mortgage and why are rates higher?
An HMO (House in Multiple Occupation) is a property let to 3 or more unrelated tenants. HMO mortgages carry higher rates (typically 0.15%–0.60% above standard BTL) because HMO management is more complex, the tenant turnover is higher, and the regulatory environment (licensing requirements) adds compliance risk. Specialist HMO lenders — Paragon, Keystone, specialist buy-to-let divisions — are the primary route.
Can I get a BTL mortgage as a first-time landlord?
Yes — most BTL lenders accept first-time landlords, though some impose restrictions (minimum income above BTL income, minimum personal homeownership). Rates for first-time landlords are generally the same as for experienced landlords at the same LTV. The rental coverage assessment and deposit requirements are identical.
What is the stress test rate and how does it affect my maximum loan?
BTL lenders stress-test affordability at a rate above the actual product rate — typically the product rate plus 2%, or a minimum floor rate (usually 5.5%–6.0%). The rental income must cover 125%–145% of the monthly payment at this stress rate. On a £200,000 loan at a 5.5% stress rate (£11,000/year), the required annual rental is £13,750–£15,950 depending on the coverage multiple applied. This limits the maximum loan for lower-yielding properties.
Does a limited company BTL mortgage cost more?
Usually a little more. In October 2026 limited company (SPV) BTL rates run 5.50%–6.20%, against 5-year personal-name fixes from 5.02%. The primary reason to use an SPV is tax efficiency (full mortgage interest deductibility against corporation tax) rather than rate.
How much can I borrow?
Usually 4 to 4.5 times income, with some lenders going to 5 or 5.5 times for higher earners and certain professions, subject to affordability.
How long does a mortgage take?
A mortgage in principle takes minutes to a day; a full offer usually takes 2–4 weeks from application.
Is a lower rate with a high fee better than a no-fee deal?
It depends on the loan size. On smaller loans the no-fee deal often wins; we compare the total cost over the fixed period.
How early can I remortgage?
You can secure a new deal up to six months before your current one ends.
What documents will I need?
ID, proof of address, 3 months' payslips and bank statements, or 2 years' accounts or tax calculations if self-employed.
Where this applies
Most buy-to-let mortgages are not regulated by the FCA. Your property may be repossessed if you do not keep up repayments.
Get a personalised rate comparison for your case
Independent whole-of-market advice · FCA No. 814533