Swap rates spiked to 4.483% on the two-year curve (Mortgage Strategy, 23 March 2026). Within hours, Coventry for Intermediaries pulled all new customer deals. Eight other lenders - Aldermore, Metro, Gen H, TSB, Nottingham, Leeds, Shawbrook, and Principality - repriced products upwards or withdrew lines. For property investors, the pattern feels familiar. But the cause is different - and how you respond matters for your tax position.

The Swap Rate Picture

Two-year swaps climbed to 4.483% as of 23 March, according to Mortgage Strategy analysis. The three-year sat at 4.420%. Five-year rates reached 4.346% (Mortgage Strategy, 23 March 2026).

This mirrors the volatility of the Liz Truss mini-budget period in late 2022. Then, swap rates blew out on fiscal credibility fears. This time, the driver is different: markets are pricing in higher rates from the Bank of England and longer duration of elevated policy. Nicholas Mendes, Mortgage Technical Manager at John Charcol, writing in Mortgage Strategy, notes: "Mortgage pricing does not wait for the Bank of England to come to fruition. If markets keep pricing in higher rates from here, lenders are likely to continue repricing in advance."

The repricing has been swift. Nine major lenders either suspended deals or increased their rates within a single trading day.

What This Means for Your Finances

The number that matters is your monthly cost. Take a £250,000 Buy to Let loan. At 6.5%, annual interest is £16,250. At 7% - where some products are now pricing - that rises to £17,500. The £1,250 extra annual cost eats directly into your gross rent, shifting your profit figure and your tax liability.

For a landlord in the higher-rate tax bracket, that £1,250 additional interest is deductible against rental income. But the point is the reverse: your taxable profit also shrinks when gross rent stays flat. The net position depends on your individual circumstances - your other income, your mortgage structure, whether you're still within the interest relief restrictions.

This repricing also affects remortgage decisions. If you're two years into a five-year deal, you cannot lock in today's rates until the deal matures. But you can now see the cost of repricing. A borrower with a portfolio of properties faces this calculation across multiple loans.

The Timing Question

Brokers are advising borrowers to act early. According to Mortgage Strategy analysis (23 March 2026), the standard guidance is to approach remortgage conversations three to six months before deal expiration. At current repricing speeds, that window matters.

The rate pattern does not yet match the panic of late 2022. But the direction is clear: if you are within striking distance of a remortgage decision, and if you have flexibility in timing, you may wish to discuss the maths with your broker. The question is not whether to remortgage immediately - it is whether to test the market sooner rather than waiting until month 59 of a 60-month term.

One caveat: repricing happens in both directions. Markets may stabilise. Your broker's view on the forward curve matters more than today's snapshot.