Moneyfacts data published on 10 April 2026 shows buy-to-let (BTL) mortgage rates may have reached their peak. Five-year fixed rates edged down and two-year rates held flat - the first meaningful pause after weeks of sustained rate rises driven by Iran war-related swap rate volatility.
The average BTL two-year fixed rate was unchanged at 5.46% as of 10 April, while the BTL five-year fix fell slightly from 5.77% to 5.76%, according to Moneyfacts. Product choice also improved overnight: BTL deal numbers rose from 4,815 to 4,845.
Why rates appear to be stabilising now
Caitlyn Eastell, personal finance analyst at Moneyfacts, attributed the slowdown to improved market sentiment following the Iran ceasefire. "Rates may now be approaching their peak, with lenders slowing down the pace of recent increases," she said on 10 April. "So far, overall sentiment has improved, reflected in easing swap rates and fewer expectations for base rate hikes."
Swap rates are the wholesale benchmark lenders use to price fixed-rate products. They had surged in the weeks following the Iran conflict, triggering rapid repricing across the market. Their recent easing is giving lenders breathing room to hold or even trim pricing rather than continuing to raise it.
Residential product choice also returned: the number of residential mortgage deals rose from 6,302 to 6,510 in a single day (Moneyfacts, 10 April). Among lenders recently cutting rates were Vida, Skipton Building Society, Leek Building Society, and Keystone Property Finance.
What this means if you hold a BTL portfolio
The rate plateau matters because it changes the timing calculation on refinancing. When rates are rising daily, any broker quote goes stale in 48 hours. A stabilisation window - even a brief one - is when you run the numbers properly. Use our free BTL stress test calculator to see what current rates mean for your portfolio. ICR (income coverage ratio - the minimum rent-to-mortgage-payment ratio lenders require) is the key measure.
For context: on a £200,000 BTL mortgage at 5.46%, monthly interest-only payments run to around £910 per month. At a 145% ICR - the standard applied to higher-rate taxpayers by most lenders - that implies minimum monthly rent of approximately £1,320 to pass the stress test. That figure has risen substantially from where it sat 18 months ago when rates were sub-4%.
"While it's encouraging to see product choice gradually returning, affordability constraints continue to limit access to homeownership for many borrowers," Eastell added. The same constraint applies on the investment side - higher rates shrink the pool of viable BTL purchases, particularly in lower-yield markets. Our negotiation and finance hub covers lender criteria and how to approach them in a higher-rate environment.
The Bank of England decision ahead
Eastell also flagged that "lenders remain cautious and their attention will be turned to the upcoming base rate decision." If the Monetary Policy Committee holds or cuts rates, the stabilisation trend could continue. A surprise hike would likely restart the repricing cycle quickly.
For investors with fixes expiring in the next three to six months, the current window is worth acting on. Speaking to a broker now - even just to establish a baseline quote - means you are not starting from scratch if conditions shift again. For a deeper look at refinance sequencing across a portfolio, the negotiation and finance hub has practical guidance on timing your remortgages around rate cycles.
Key takeaways
- The average BTL two-year fix held at 5.46% on 10 April 2026 and the five-year fix dipped to 5.76% - the first pause in weeks of sustained rises (Moneyfacts) - BTL product numbers improved to 4,845 deals available, up from 4,815 the previous day - Four lenders cut rates recently: Vida, Skipton Building Society, Leek Building Society, and Keystone Property Finance - Easing swap rates after the Iran ceasefire are the key driver - short-term rate hike expectations have reduced - The Bank of England's next base rate decision remains the key risk to the stabilisation narrative
