Barclays raised buy-to-let and residential mortgage rates from 25 March 2026, with BTL products hit hardest. The maximum increase is 55 basis points (bps - each basis point equals 0.01%) on buy-to-let, and 35bps on residential. It comes as the average mortgage rate hit 5.48% on 24 March - a 59bps surge since the start of the current conflict, according to Mortgage Finance Gazette.

What the Numbers Actually Mean

Run the numbers on a typical BTL property. If you hold a £200,000 interest-only BTL mortgage and your lender reprices by 55bps, your monthly payment goes up by just over £91. That is an extra £1,100 per year, per property.

The headline BTL moves: the 75% LTV (loan-to-value) two-year fixed rose from 4.58% to 5.13%. The five-year fixed moved from 4.15% to 4.70%. Both carry a £1,295 fee (Mortgage Finance Gazette, 24 March 2026). On the remortgage side, the 60% LTV two-year fix went from 4.28% to 4.83%. The 75% LTV five-year remortgage moved from 4.50% to 5.05%, both with no fee.

Residential borrowers face smaller moves. The 80% LTV two-year fix went from 4.69% to 5.04%, the 85% LTV product from 4.79% to 5.14% (Mortgage Finance Gazette, 24 March 2026).

If You Are Mid-Application

Both new purchase and remortgage products are affected. If you are partway through an application, check with your broker whether the rate you were offered is still valid. Some lenders hold a rate for 5-10 days after you receive an illustration - others do not. Do not assume.

The broader trend is not improving. Average rates have climbed 59bps since the conflict began. Lenders repricing now are responding to swap rate (the wholesale rate banks use to price fixed mortgages) movements. More repricing is likely if swap rates remain elevated.

You may wish to stress-test your portfolio at current rates before your next renewal comes around.