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The Bank of England has acted as many economists and market analysts predicted, holding the official interest rate at 3.75 percent in February 2026 for at least another month.
Interest rates have gradually declined from a high of 5.25 percent in August 2023, and although many are disappointed that rates are not falling faster, they are expected to drop further later this year.
Stability allows landlords to plan their finances without big rate moves undermining their property businesses.
This stability also allows lenders to offer product choice and better terms, like more relaxed income multiples.
For landlords with fixed-rate deals, interest rate changes do not matter until the end of the term, when shifting to a new rate could be more expensive.
Tracker-rate mortgages remain unchanged unless lenders adjust their terms.
No movement is good news for landlords on variable rate deals, as rates and terms are unlikely to change.
Currently, lenders have 5,580 buy-to-let loans available for landlords, according to mortgage monitor Moneyfacts.
The cheapest buy-to-let mortgage is a 2.19 percent fix for two years offered by CHL Mortgages. The mortgage has a £150 booking fee and an arrangement fee of 7 percent of the loan. Maximum loan-to-value is 75 percent.
The best corporate mortgage offer is 3.54 percent fixed for two years from Molo Finance at 80 percent loan-to-value. The lender charges a £150 booking fee and an arrangement fee of 4.5 percent of the amount borrowed.
First time landlords can take advantage of a special deal from HSBC with a 3.75 percent fix until May 31, 2031 at up to 75 percent loan-to-value. The fee is £3,999.
| Product | Deals | Best deal |
|---|---|---|
| Best fixed rate | ||
| 2 year fixed rate | 1,725 | 2.19% - CHL Mortgages |
| 3 year fixed rate | 107 | 3.04% - BM Solutions |
| 5 year fixed rate | 1,939 | 3.48% - BM Solutions |
| Best loan-to-value rates | ||
| 60% LTV | 4,072 | 2.19% - CHL Mortgages |
| 75% LTV | 2,754 | 2.20% - CHL Mortgages |
| 80% LTV | 574 | 2.54% - Molo Finance |
| Best variable rates | ||
| Discounted variable | 123 | 3.15% - Staffordshire Building Society |
| All variable | 153 | 3.15% - Staffordshire Building Society |
| Best corporate deal | 10 | 2.19% - CHL Mortgages |
| Best first-time landlord deal | 10 | 3.74% - HSBC |
| All buy-to-let - Best deal | 4,072 | 2.19% - CHL Mortgages |
Source: Moneyfacts
An example mortgage is borrowing £170,000 over 25 years on a house valued at £284,000 at an interest rate of 4.58 percent variable for 25 months, reverting to 8.49 percent variable for the term. 25 monthly payments of £648.83 and 275 monthly payments of £1,202.75. Total payable £518,201.00 includes loan amount, interest of £346,977, a zero valuation fee and product fees of £999. The overall cost for comparison is 8.2 percent APRC representative.