Buy to let mortgage rates

Buy to let mortgage rates sit higher than residential rates because lenders price in the additional risk of rental property investment. As of mid-2026, typical rates for a buy to let mortgage fall within these ranges depending on the product type and deposit size.

For landlords with a 25% deposit (75% LTV), two-year fixed rates generally start from around 4.8% to 5.4%. If you can put down a 40% deposit (60% LTV), rates drop to around 4.5% to 4.9%. Five-year fixed deals offer slightly lower rates, starting from approximately 4.3% for lower LTV borrowers, reflecting the longer commitment period.

Variable and tracker rates tend to sit between 4.0% and 5.0%, though these move with the Bank of England base rate. Most buy to let lenders offer interest-only repayment, which keeps monthly costs lower than capital repayment options. You can estimate your likely payments using a buy to let mortgage calculator before speaking to a broker.

Several factors determine the rate a lender will offer you. Understanding these helps you position yourself for the most competitive deal before you apply.

• Loan-to-value ratio (LTV): The more deposit you put down, the lower your rate. Most buy to let lenders require at least a 25% deposit, though some accept 20%. The best rates are typically reserved for borrowers at 60% LTV or below. Read more about buy to let deposit requirements.
• Interest coverage ratio (ICR): Lenders need your rental income to cover between 125% and 145% of the mortgage payment. Stronger rental yield compared to the loan amount usually means access to lower rates.
• Property type: Standard single-let houses attract the lowest rates. HMOs, multi-unit freeholds, and holiday lets are classed as specialist and carry a rate premium of 0.5% to 1.0%.
• Credit history: A clean credit record unlocks the widest choice. Adverse credit does not rule you out, but you can expect rates 1% to 3% higher than standard products.
• Portfolio size: If you own four or more mortgaged properties, you are classed as a portfolio landlord. Some lenders add a small premium, while specialist lenders may offer competitive rates for larger portfolios.

Check the full list of buy to let mortgage requirements before applying to avoid unnecessary credit searches.

Choosing between a fixed rate and a variable rate affects both your monthly costs and your flexibility. Here is how the main options compare for buy to let landlords.

Fixed-rate mortgages lock your interest rate for a set period, usually two or five years. This gives you certainty over your payments, which makes it easier to calculate your rental yield accurately. Two-year fixes offer slightly higher initial rates but let you remortgage sooner if rates fall. Five-year fixes provide longer stability and often carry marginally lower rates.

Tracker mortgages follow the Bank of England base rate plus a set margin. If the base rate drops, your payments fall. If it rises, your costs increase. Trackers suit landlords who believe rates will come down and who can absorb short-term increases.

Discounted variable rates track the lender's standard variable rate (SVR) minus a discount. These can be less predictable than trackers because the lender can change their SVR independently of the base rate.

Most buy to let landlords in 2026 choose five-year fixed deals. The small rate saving compared to two-year fixes, combined with fewer remortgage fees over time, often makes five-year products more cost effective. When your current deal ends, remortgaging your buy to let promptly avoids rolling onto the lender's SVR, which is typically 2% to 3% above fixed rates.

The structure you choose for your buy to let purchase directly affects the mortgage rates available to you and your overall tax position. Both routes have distinct rate implications.

Personal buy to let mortgages tend to offer slightly lower interest rates because lenders have a longer track record with individual landlords. You can typically access the widest range of products and the most competitive headline rates. However, rental income is taxed as personal income, and you can no longer deduct mortgage interest as an expense. Instead, you receive a 20% tax credit under Section 24 rules.

Limited company (SPV) mortgages carry rates that are typically 0.2% to 0.5% higher than personal equivalents. Fewer lenders operate in this space, which limits competition. The trade-off is that corporation tax (currently 25%) applies to profits rather than income tax, and mortgage interest remains fully deductible as a business expense. For higher-rate taxpayers, the tax savings can outweigh the rate premium. Learn more about buying through a limited company.

The right choice depends on your tax bracket, number of properties, and long-term plans. A broker can model both scenarios and show you the total cost including buy to let tax obligations alongside the rate difference.

Securing a competitive buy to let rate comes down to preparation and access. Follow these steps to position yourself for the best deal available.

• Increase your deposit: Moving from 75% LTV to 60% LTV can reduce your rate by 0.3% to 0.5%. On a £200,000 mortgage over five years, that saves roughly £3,000 to £5,000 in interest.
• Maximise rental income: Lenders stress-test affordability based on rental yield. A property with strong rental demand and above-average rent relative to value gives you access to lower rates.
• Clean up your credit: Check your credit file with all three UK agencies before applying. Settle any outstanding defaults and make sure the electoral roll has your correct address.
• Compare the total cost, not just the rate: A mortgage at 4.5% with a £2,000 arrangement fee can cost more over two years than a deal at 4.7% with no fee. Always compare the total payable amount.
• Use a whole-of-market broker: Many competitive buy to let rates are only available through intermediaries. A broker searches across 90+ lenders, including specialist providers you cannot approach directly.

Get matched with a buy to let mortgage broker through Money Saving Advisors. There are no upfront fees, and your broker will search the whole market to find the right rate for your circumstances.