Mortgage rates across all areas have fallen overall throughout the course of 2025, despite small fluctuations generally surrounding wider market ripples, including Bank of England interest rate and inflation announcements.<\/p>\n
Interest rate changes always come with mixed reactions depending on people’s circumstances, with savers generally willing them to stay higher while borrowers hold onto the hope of a fall to reduce their outgoings. Particularly for property investors<\/a>, buy-to-let mortgage rates are a crucial part of the puzzle when working out affordability and profitability.<\/p>\n The latest decision to hold the base rate essentially means interest rates remain unchanged – but, of course, individual lenders continue to compete for customers while hedging against future possible swap rate changes, meaning their products are continually being reassessed.<\/p>\n The average buy-to-let mortgage<\/a> rate now sits below 5%, giving many property investors a much greater borrowing power than they might have faced two years ago. Rates are actually at their lowest now than they have been since the summer of 2022, according to figures from Moneyfactscompare.co.uk<\/a>.<\/p>\n Many lenders had actually acted in anticipation of an interest rate drop last week, with The Mortgage Works – the specialist subsidiary of Nationwide – reducing selected buy-to-let mortgage rates for new and existing customers by up to 0.30 percentage points on Thursday.<\/p>\n The lender is now offering a new businesses two-year fixed buy-to-let mortgage rate of 2.64% with a 3% fee up to 65% loan-to-value (LTV) – which is a 0.10% reduction. It offered the biggest reduction on HMO lending with its two-year fixed rate product at 4.09% with a 3% fee up to 75% LTV, down by 0.30%.<\/p>\n In further a sign that the base rate announcement has not dampened competition in the buy-to-let mortgage market, Coventry for Intermediaries announced a series of rate cuts on its buy-to-let products the day after the decision on Friday. It is now offering a 5.09% five-year fixed rate until 31 May 2031 at 75% LTV with no fee for limited company buy-to-let purchases.<\/p>\n The move was made as a way of helping to “rebuild confidence among borrowers who\u2019ve been waiting for the right moment to act”, according to Jonathan Stinton, head of intermediary relationships at Coventry Building Society, which is certainly something the industry has experienced over the course of 2025.<\/p>\n In a clear reflection of increasing market demand in the segment of limited company mortgages, lenders have been not only boosting the number of deals on the table but also lowering rates.<\/p>\n The number of landlords opting to purchase and run their buy-to-lets under limited company structures has soared in recent years, which has been largely in reaction to tax changes, including the removal of mortgage interest relief for income tax. According to research carried out by Foundation Home Loans, 20% of landlords now have at least one buy-to-let mortgage in a limited company, rising to 30% for portfolio landlords.<\/p>\n The average proportion of a landlord\u2019s portfolio held in a company structure has more than doubled from 36% in Q1 2020 to 74% in Q2 2025, showing the sheer scale of the increase – and this is something lenders are acutely aware of.<\/p>\n According to Moneyfactscompare.co.uk, the number of two- and five-year fixed buy-to-let mortgage deals for limited companies rose to 1,730 at the start of October, compared to just 841 two years ago,. Moreover, the average rates on these deals fell by more than one percentage point over the same period.<\/p>\n This year has been largely a more positive year<\/a> from a property investment standpoint than 2024, thanks to more housing market growth fuelled by a rise in both demand and supply, stronger rental yields particularly in parts of the country with the greatest tenant numbers, and cheaper borrowing costs that seem set to close the year comfortably down on where they were in January.<\/p>\n In terms of interest rates, despite some disappointment among borrowers this year that the Bank of England hasn’t made as many cuts as many had hoped, the expectation remains that rates will continue to come down as inflation is brought back under control.<\/p>\n Short-term, of course, the hurdle of the Autumn Budget looms, which tends to encourage a ‘wait-and-see’ approach across much of the market. As Matt Smith, Rightmove\u2019s mortgage expert, noted, lenders have also \u201chit the pause button\u201d ahead of the Chancellor Rachel Reeves’ speech on 26th November.<\/p>\n He added after Thursday’s base rate decision: “There\u2019s still a good chance of a rate cut before the end of the year, depending on what is announced in a couple of weeks\u2019 time, and if not then we\u2019re looking at early 2026.<\/p>\n “With the uncertainty surrounding how the upcoming Budget will impact people\u2019s finances, another rate cut soon followed by some notable reductions in mass-market mortgage rate products would be a big boost to home-mover sentiment and affordability.”<\/p>\n Frances McDonald, director of research at Savills, had an equally upbeat opinion on next year’s market: “Combined with more relaxed mortgage rules \u2013 which allow some buyers to borrow a larger multiple of their income \u2013 and a materially stronger UK economy beyond 2026, we expect renewed upward pressure on house prices. Our latest forecast predicts that UK average house prices are set to rise by 22.2% by 2030, with annual growth peaking at 5% in 2028 and 5.5% in 2029.”<\/p>\n","protected":false},"excerpt":{"rendered":" As the market holds its breath ahead of the Autumn Budget, the Bank of England’s decision to hold interest rates steady at 4% came as no surprise; while landlords may be waiting to see how buy-to-let mortgage rates are affected. Mortgage rates across all areas have fallen overall throughout the course of 2025, despite small… Read more »<\/a><\/p>\n","protected":false},"author":1069,"featured_media":6030632,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[2,26],"tags":[450,412,108],"class_list":["post-6101838","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buy-to-let-landlords","category-tax-mortgages-money","tag-base-rate","tag-buy-to-let-mortgages","tag-mortgage-rates"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/6101838","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/users\/1069"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/comments?post=6101838"}],"version-history":[{"count":1,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/6101838\/revisions"}],"predecessor-version":[{"id":6101839,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/6101838\/revisions\/6101839"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media\/6030632"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media?parent=6101838"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/categories?post=6101838"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/tags?post=6101838"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Lenders acting against the grain<\/h3>\n
Better deals on limited company buy-to-let mortgages<\/h3>\n
Closing 2025, more hope for 2026?<\/h3>\n