Two more lenders have joined the repricing wave. TSB and Principality Building Society announced increases overnight, effective tomorrow (Mortgage Strategy, 25 March 2026). TSB's two-year fixed remortgage rates for both residential and buy-to-let (BTL) properties are climbing 45 basis points (0.45%). Five-year fixed remortgage rates rise 25 basis points. Principality is steeper: two-year fixed rates at 90% loan-to-value (LTV - the ratio of what you borrow to the property's value) jump 50 basis points across residential and BTL deals.
What does this cost you? Run the numbers on a typical £200k BTL mortgage. At TSB's two-year rates, 45bps adds 0.45% x £200,000 / 12 months = £75 extra per month, or £900 a year. On Principality's two-year deal, 50bps adds 0.50% x £200,000 / 12 = £83 per month, or just under £1,000 annually.
The Lender Reset Is Real
This isn't isolated. NatWest and Metro Bank moved rates the same day (Mortgage Strategy, 25 March 2026). Newcastle Building Society is pulling dozens of products entirely at close of business, with no timeline for replacements. The pattern is clear: lenders are stress-testing (running scenarios to see what borrowers can afford at higher rates) their books and repricing to cover rising swap costs.
Mortgage Strategy also reported that "the average two-year fix is now more expensive than the average five-year deal" (25 March 2026). That tells you lenders expect short-term volatility. If you're mid-application, this window is tightening.
What to Consider
If your application is live and your rate is locked, you're protected. If you're shopping, your broker's numbers may have shifted since yesterday. You may wish to contact them before close of business today.
For anyone sitting on a decision, every 50bps on a £200k BTL mortgage costs just under £1,000 a year. Consider whether your current rate still works and speak to your broker about your options.
