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Buy-to-let mortgage rates have fallen to the lowest level for three years.
The average two-year fixed rate dropped to 4.88 percent, while the average five-year fixed rate tumbled to 5.21 percent.
The news that buy-to-let mortgages are at their lowest since September 2022 will cheer landlords exiting fixed-rate deals and looking to refinance at a competitive rate.
Two-year fixes averaged a much higher rate of 6.64 percent in September 2023.
However, landlords who locked into five-year buy-to-let fixes when fixed-rate deals were cheaper in September 2020 are less well-off and face paying more on a remortgage.
Average five-year fixed buy-to-let mortgage rates were 3.20 percent five years ago, which is cheaper than the best rate of 3.64 percent in 2025.
As well as falling rates, landlords have more deals to choose from as the number of buy-to-let deals climbed to a record high of 4,597 loans.
According to buy-to-let mortgage market monitor Moneyfacts, the number of lenders offering competitively priced 75 percent and 80 percent loan-to-value (LTV) mortgages has increased, with 3,217 deals to choose from.
Moneyfacts argues that the buy-to-let market is challenging for landlords despite cheaper interest rates.
Budget measures from Chancellor Rachel Reeves next month, combined with upcoming law changes when the Renters Rights Bill becomes law, could squeeze landlord profits even more.
The threat of National Insurance bills for non-corporate landlords, rent increase restrictions and the abolition of Section 21 no-reason evictions are just a few of the likely new measures in the pipeline for buy-to-let.
"The path for landlords remains uncertain, as many will be struggling to keep up with legislation, which drains time and finances just to tread water with changes," said Rachel Springall of Moneyfacts.
"New or existing landlords would be wise to seek advice to assess how any moves in the sector will impact them."
| Product | Rate | APRC | Max LTV |
|---|---|---|---|
| 2 year fixed | 2.24% | 8.80% | 65% |
| 3 year fixed | 4.39% | 5.80% | 95% |
| 5 year fixed | 3.64% | 6.30% | 60% |
| 60% LTV | 2.24% | 8.80% | 65% |
| 75% LTV | 2.30% | 8.90% | 75% |
| 80% LTV | 2.78% | 6.90% | 80% |
| Discounted variable | 3.05% | 7.50% | 70% |
| All variable | 3.05% | 7.50% | 70% |
| All buy-to-let | 2.24% | 8.80% | 65% |
Source: Moneyfacts
| Product | Lender | Rate | Max LTV | Fees |
|---|---|---|---|---|
| 2-year fix | CHL | 2.24% | 65% | Booking fee £150, arrangement fee 7% of advance |
| 2-year fix | MT Finance | 2.98% | 75% | Booking fee £150, arrangement fee 7% of advance |
| 2-year fix | Metro Bank | 3.49% | 65% | Booking fee 5% of advance |
| 2-year fix | Molo Finance | 3.68% | 75% | Booking fee £150, arrangement fee 4.5% of advance |
| 5-year fix | Metro Bank | 4.59% | 65% | Booking fee 5% of advance |
| Discount variable | Cumberland BS | 4.78% | 75% | Arrangement fee £999 |
| 5-year fixed | Leeds BS | 4.79% | 75% | Arrangement fee £1.499 |
| 2-year fix | The Mortgage Works | 5.08% | 75% | Arrangement fees £1,498 |
| 5-year fix | Molo Finance | 5.24% | 80% | Booking fee £150, arrangement fee 3% of advance |
| 5-year fix | Nottingham BS | 5.84% | 80% | None |
Source: Moneyfacts