THE PROPERTY FILTER TAKE
Family Building Society brought back its buy-to-let fixed rates last week, 60 basis points higher, while its tracker rates stayed unchanged.
On an illustrative £200,000 interest-only loan, 60 basis points adds £100 a month, and its 1% fee two-year fix now sits 0.90 percentage points above the matching tracker.
Consider asking your broker to price a fix and a tracker side by side before you appraise your next purchase.
Family Building Society relaunched its buy-to-let fixed rates last week, on Wednesday 16 September, with the rates increased by 60 basis points (Mortgage Solutions, 16 September 2026). A basis point is one hundredth of a percentage point, so 60 basis points is 0.60%. The mutual (a building society owned by its members rather than shareholders) said the rise was made in light of swap rate volatility.
What did Family Building Society change?
The relaunch covered fixed rate products across both the owner-occupier and BTL (buy-to-let) ranges (Mortgage Solutions, 16 September 2026). Swap rates are the market rates lenders use to price the cost of fixing their own funding for a set period.
The fixed range had been temporarily withdrawn on 4 September (The Intermediary, September 2026). Property Reporter describes it as a 12-day withdrawal. Longer end dates came in across the range. Variable rate products, including discount and tracker rates, were not changed, and nor were reversionary rates (the rate a loan moves to when its deal ends).
Darren Deacon, head of intermediary sales, said market conditions "remain challenging for borrowers and brokers alike", pointing to ongoing events in the Middle East (Mortgage Solutions, 16 September 2026). He added that the refreshed range gives brokers more options for borrowers who want the certainty of a fixed rate.
What does 60 basis points cost per month?
Here's the angle. Take an illustrative £200,000 interest-only BTL loan. That is my example, not a lender quote. A 0.60% rise adds £1,200 a year in interest, which is £100 a month. Our free stress test calculator shows what a higher pay rate does to the rental cover a lender asks for.
Now the live pricing. On the society's buy-to-let comparison page, checked 24 September 2026, a two-year fixed rate to 31 January 2029 sits at 6.24%. That product carries a fee listed as 1.00% and a 75% maximum LTV (loan to value, the loan as a share of the property's value). A two-year tracker with the same fee and LTV sits at 5.34%, which the page describes as 1.59% above Bank Rate.
Where is the opportunity in the tracker gap?
The gap between those two products is 0.90 percentage points. On the same illustrative £200,000 interest-only loan, 6.24% costs £1,040 a month and 5.34% costs £890. That is £150 a month in the tracker's favour at today's pricing, before fees. The illustration ignores fees and assumes the terms are otherwise comparable, which your broker would need to confirm.
But the saving is not free. A tracker moves with Bank Rate. On this pricing, Bank Rate would have to rise by 0.90 percentage points during the two-year tracker period before its pay rate matched the fix. That is the trade-off worth pricing into any deal you are appraising, and our guides on mortgages, brokers and lender negotiation cover how to frame it.
The five-year end of the range is the other number worth watching. The same page lists a five-year fixed rate to 30 November 2031 at 6.39%, also with a 1.00% fee and 75% maximum LTV. That is 0.15 percentage points above the two-year fix, or £25 a month on the illustrative loan, for close to three extra years of certainty on the listed end dates. How that sits with a hold period is covered in our property investment strategies hub.
Key takeaways
Family Building Society relaunched its buy-to-let and owner-occupier fixed rates on 16 September 2026, increased by 60 basis points.
The fixed range had been withdrawn on 4 September, and the society's tracker, discount and reversionary rates were not changed.
On an illustrative £200,000 interest-only loan, a 60 basis point rise costs £100 a month.
On 24 September 2026, its 1% fee two-year BTL fix sat at 6.24% against a matching tracker at 5.34%, a gap of 0.90 percentage points.
On 24 September 2026, the society's five-year BTL fix at 6.39% sat 0.15 percentage points above its two-year fix on the same 1% fee.
Frequently asked questions
Why did Family Building Society raise its fixed rates?
Did Family Building Society change its tracker rates?
What does a 60 basis point rise cost on a buy-to-let loan?
Are these buy-to-let rates still available?
