BTL Mortgage Costs Climb to Their Highest in Two Years

Buy-to-let mortgage costs have jumped sharply in a single month. According to Moneyfacts data published on 30 March 2026, the average five-year fixed buy-to-let (BTL) rate hit 5.28% on 26 March, the highest level in two years. The two-year fix climbed to 5.29%, a level not seen for a year. Both moves happened within weeks.

What the Numbers Mean for Your Monthly Payment

Let me run the numbers. Based on a £250,000 BTL mortgage over 25 years, borrowing costs are now £1,100 per year more than at the start of March, according to Moneyfacts (30 March 2026). That works out to roughly £92 per month on that loan size.

On a more typical BTL mortgage of £200,000 over 25 years, the shift from the March start rate of 4.66% to 5.29% adds around £73 per month to your payment. That is just under £880 per year, before you factor in any arrangement fees.

Your loan-to-value (LTV) ratio, the size of your mortgage as a percentage of the property value, determines how hard rates hit you. At 80% LTV, the average two-year fix sat at 5.83% on 26 March. At 75% LTV, it was 5.28%. Rates below 5% were only available at 60% LTV, where the two-year fix was 4.93% and the five-year fix was 4.91% (Moneyfacts, 26 March 2026). The gap between the lowest and highest tier is close to a full percentage point.

You can model where your portfolio sits using the Property Filter stress test calculator, which checks maximum loan sizes against your rental income and lender criteria.

Product Choice Has Also Shrunk

It is not just the cost that has moved. The number of available BTL deals fell sharply too. Moneyfacts counted 4,332 fixed and variable products on 26 March 2026, down from 5,660 at the start of that month.

Landlords seeking a 75% LTV mortgage saw the steepest drop: products fell from 2,416 to 1,743 in a single month. At 80% LTV, choice shrank from 643 to 489. Even the lower-risk 60% LTV tier contracted, from 272 to 204 deals.

Fewer products means less room to negotiate. If your fixed deal ends in the next three to six months, consider speaking to your broker sooner rather than later. For more on financing options across different strategies, the Property Filter finance and negotiation guides are a good starting point.

What Is Pushing Rates Up

Rachel Springall, finance expert at Moneyfactscompare.co.uk, was clear about the cause: "The unrest in the Middle East has caused absolute mayhem in the residential mortgage market. BTL rates are also being hiked, and hundreds of deals have been pulled from sale."

Springall added that the positive sentiment seen at the start of 2026 had been "shattered", and that landlords face more than just higher borrowing costs. The Renters' Rights Act requires preparation for the Decent Homes Standard, and landlords may need additional borrowing to fund refurbishment work. On energy efficiency, Springall said landlords are expected to invest up to £10,000 to reach an EPC rating of C by October 2030. Missing that target could result in substantial fines.

If you are reviewing whether your portfolio still works at these rates, the Property Filter property investment strategies guide covers how to assess returns across different structures. If incorporation or Section 24 (the restriction on mortgage interest relief for individual landlords) is relevant to your situation, see the Property Filter business and systems resources for context.

Key Takeaways

• The average five-year fixed BTL rate reached 5.28% on 26 March 2026, the highest in two years (Moneyfacts).

• The two-year fix hit 5.29%, the highest in one year.

• A £250,000 BTL mortgage now costs around £1,100 per year more than at the start of March.

• Available BTL products fell from 5,660 to 4,332 in a single month.

• Rates below 5% were only accessible at 60% LTV or below as of 26 March 2026.