Buy to Let Mortgage Rates 2026 — Updated August 2026
- Best 2yr BTL fix (Keystone, 65% LTV, Aug 2026)
- 3.39%Best 2yr BTL fix (Keystone, 65% LTV, Aug 2026)
- Average 2yr BTL fix range
- 4.80%–5.40%Average 2yr BTL fix range
- Average 5yr BTL fix range
- 5.10%–5.75%Average 5yr BTL fix range
- Last updated
- August 2026Last updated
Buy-to-let mortgage rates in 2026 range from below 3.5% at the sharp end for established landlords with large deposits to 6%+ for complex profiles or specialist asset types like HMOs and holiday lets. The current best buy 2-year fix is 3.39% from Keystone Property Finance at 65% LTV (August 2026). Average rates across the market sit at 4.8%–5.4% for 2-year fixes and 5.1%–5.75% for 5-year fixes.
Buy to Let Mortgage Rates by LTV and Term — August 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 | 3.39% (Keystone) | 3.39%–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 | ~4.3%–4.8% | 4.3%–5.75% |
| Standard BTL tracker | 65% LTV | BoE+1.5%–2.5% (approx 5.25%–6.25%) | Variable |
| HMO / MUFB | 65%–75% LTV | ~4.8%–6.0% | 0.5%–1.5% above vanilla BTL |
| Holiday let | 65% LTV | 5.69%+ (Keystone) | 5.69%–7.5% |
| Expat BTL (non-resident) | 65%–75% LTV | 4.18% (Molo Finance) | 4.18%–5.5% |
| Limited company / SPV BTL | 65%–75% LTV | ~4.5%–5.8% | Broadly comparable to personal, some premium |
| Portfolio landlord (4+ properties) | 65%–75% LTV | ~4.5%–5.5% | Portfolio assessment applies — lender pool narrows |
What determines your rate
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
2-year fixes currently price lower than 5-year fixes — the yield curve is slightly inverted for BTL. If you are uncertain about rates or plan to sell within 2–3 years, the 2-year fix is currently better value. 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, MUFBs, short-term lets, and holiday lets all attract a premium of 0.5%–1.5% above standard BTL rates.
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 are broadly comparable to personal name — the differential has narrowed. The structural decision should be driven by tax efficiency rather than rate, since rates are now similar.
Worked cost example
- Rate
- 4.60% (standard 5yr fix, 70% LTV)
- Monthly interest-only payment
- £767/month
- Annual interest cost
- £9,200
- Arrangement fee
- £1,999
- Total cost over 5-year term (interest + arrangement fee)
- £47,999
- Required monthly rental income (at 145% ICR)
- £1,112/month
- Required annual rental (at 5.5% stress rate)
- £13,200/year
Scenario: £200,000 BTL mortgage on a £285,714 property (70% LTV). Single-let residential. 5-year fix.
At a lower rate of 4.20% (65% LTV), monthly payment would be £700 — saving £67/month (£4,020 over 5 years).
Rate context and outlook
BTL rates have been on a generally downward trajectory since the peak of 2023–2024 as the BoE base rate has reduced from its peak. Key August 2026 development: Keystone Property Finance cut rates by 10bps to 3.39% for standard BTL at 65% LTV — one of the most competitive BTL rates currently available. Coventry Building Society also cut across its BTL range in August 2026. The BoE held base rate at 3.75% on 30 July 2026 with further cuts expected in September and November — suggesting continued gradual downward rate pressure through H2 2026.
Frequently asked questions
Should I take a 2-year or 5-year BTL fix in 2026?
In August 2026, 2-year BTL fixes are pricing below 5-year fixes — unusual and driven by the inverted yield curve. If you expect rates to continue falling (as most economists predict given BoE cut expectations), a 2-year fix allows you to remortgage to an even lower rate in 2028. A 5-year fix provides certainty but locks in the current rate. For most landlords not planning to sell in the next 5 years, the 2-year fix currently offers better value with the trade-off of remortgage cost and rate risk in 2028.
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 (0.5%–1.5% above vanilla 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?
In 2026, limited company (SPV) BTL rates are broadly comparable to personal name rates — the differential that existed in 2022–2023 has largely closed. The primary reason to use an SPV is now tax efficiency (full mortgage interest deductibility against corporation tax) rather than rate. Some specialist lenders have slightly different pricing for SPV applications but the difference is typically 0.1%–0.3%.
Get a personalised rate comparison for your case
Independent whole-of-market advice · FCA No. 814533