THE PROPERTY FILTER TAKE
Barclays withdrew its 4.75% two-year and 4.93% five-year fixes from 29 September, and broker Aaron Strutt said Nationwide's rises from 30 September left it one new-customer fix below 5%.
Run the numbers: a 0.30-point rise on a £200,000 interest-only BTL loan adds £50 to your monthly payment, or £600 a year.
Consider asking your broker which sub-5% offers are still open to you before 5 November, when the Bank of England announces its next rate decision.
Sub-5% mortgage deals are running out on the high street. Barclays withdrew its 4.75% two-year fix and 4.93% five-year fix for new customers from 29 September, repricing them to 5.05% and 5.03% (Brit Brief, 28 September). Trinity Financial's Aaron Strutt called the two-year deal market-leading. Moneyfacts' weekly rate watch, reported by Mortgage Strategy on 2 October, lists selected Barclays fixed rates as withdrawn on 29 September. It records Barclays fixes rising by up to 30bps (basis points, hundredths of a percentage point) the same day.
Which lenders have pulled their sub-5% mortgage deals?
Barclays did not stop there. Mortgage Solutions reported on 1 October its second repricing in a week, lifting its residential purchase two-year fix at 60% LTV with an £899 fee from 5.05% to 5.15%. Moneyfacts records Barclays increases of up to 21bps on 2 October. LTV (loan to value) is the loan as a share of the property's value.
Nationwide raised fixed rates from 30 September, by between 0.06% and 0.18% for new and existing homemovers, with two-year fixes now from 4.99% (Mortgage Solutions, 29 September). Aaron Strutt of Trinity Financial said that 4.99% deal, with a £1,499 fee and a 40% deposit, would be Nationwide's only new-customer fix below 5%. Virgin Money raised two-year purchase fixes by up to 0.13% from the same date.
TSB moved on existing borrowers. It raised selected BTL (buy-to-let) product transfer (a new deal with your current lender) two-year fixes at 0-60% and 75-80% LTV by up to 0.2% (Mortgage Solutions, 1 October). If you are weighing a product transfer against a remortgage, our negotiation and finance hub covers how investors work with brokers and lenders.
What does a 0.30-point rise cost on a BTL mortgage?
Barclays' 4.75% and 5.05% are residential rates, but run the numbers on a move of the same size for a landlord. Take a £200,000 BTL loan on interest-only terms (you pay only the interest each month and repay the loan at the end). At 4.75%, your monthly payment is £791.67. At 5.05%, it is £841.67. That is £50 a month more, or £600 a year. These are my own calculations, before fees.
Smaller moves still cost money. TSB's rise of up to 0.2% on a BTL product transfer works out at up to £33.33 a month on the same £200,000 loan. On capital repayment over 25 years, the 4.75% to 5.05% move lifts the payment from £1,140.23 to £1,175.01, a rise of £34.78.
If you are refinancing, you may wish to check whether your rent still covers the new rate. You can test your own deal with our free BTL stress test calculator.
Will the Bank of England raise Bank Rate on 5 November?
The Bank of England's MPC (Monetary Policy Committee, the nine members who set Bank Rate) held Bank Rate at 3.75% at its meeting ending 16 September. The vote was 6 to 3, with three members voting to raise it to 4% (Bank of England September 2026 minutes). The next decision is due on Thursday 5 November, with the November Monetary Policy Report (Bank of England MPC dates).
Governor Andrew Bailey's signal points upwards. On 17 September he said that the longer energy price volatility lasts, "the more likely it is we will need to raise Bank Rate" (Bank of England). CPI inflation was 3.1% in August, and the September minutes expected it to reach around 3¾% in the fourth quarter of 2026.
If you are on a tracker (a rate that moves with Bank Rate), a 0.25-point rise would add £41.67 a month on a £200,000 interest-only loan. Fixed-rate borrowers are feeling it already. Commenting on Barclays' latest move, David Hollingworth of L&C Mortgages said rising funding costs are putting pressure on lenders (Mortgage Solutions, 1 October). Our property investment strategies hub covers how investors weigh fixing, tracking and refinancing over the cycle.
Key takeaways
Barclays withdrew its 4.75% two-year and 4.93% five-year fixes from 29 September, repricing them to 5.05% and 5.03%.
Nationwide's increases from 30 September left a 4.99% two-year fix, with a 40% deposit, as its only new-customer fix below 5%, according to Trinity Financial's Aaron Strutt.
A 0.30-point rise on a £200,000 interest-only BTL loan adds £50 a month, or £600 a year.
The Bank of England held Bank Rate at 3.75% in September by 6 votes to 3, and its next decision is on 5 November.
A 0.25-point Bank Rate rise would add £41.67 a month to a £200,000 interest-only tracker.
Frequently asked questions
Are there still mortgages below 5%?
What happened to the Barclays 4.75% mortgage?
How much more does a 0.30% rate rise cost on a BTL mortgage?
When is the next Bank of England interest rate decision?
