What is happening with BTL mortgage rates right now?
The Bank of England base rate has been falling since late 2024. Buy to let mortgage rates have responded, with five-year fixed deals now available from around 4.2-5.0% depending on LTV and rental coverage.
For landlords who fixed in 2020 or 2021 at sub-2% rates, rates are still higher than they were. But waiting on an SVR (typically 7-9%) while doing nothing is expensive.
Does remortgaging make financial sense?
A 250,000 BTL mortgage at 8% SVR costs approximately 1,667 per month on interest-only. The same mortgage at 4.5% fixed would cost approximately 938 per month - a saving of around 729 per month, or 8,748 per year.
Even accounting for early repayment charges and arrangement fees, the numbers typically justify switching in most cases.
Should you fix for 2 or 5 years?
A 2-year fix offers a lower initial rate and more flexibility if rates fall further. A 5-year fix offers payment certainty and fewer arrangement fees over the period.
For long-term investors with no plans to sell, the 5-year fix often offers better total value. If you anticipate significant rate falls, a 2-year deal keeps options open.
Roger Cooper
Full CeMAP Qualified Mortgage Adviser | FCA Regulated (Ref 478810)
Roger holds the full Certificate in Mortgage Advice and Practice (CeMAP Parts 1, 2 & 3) and has over 15 years of experience as an independent mortgage adviser. He specialises in complex cases including self-employed applicants, portfolio landlords, expat mortgages, and high-value purchases across Greater London and the Home Counties.
All advice is provided by Roger Cooper, who holds the full CeMAP qualification (Parts 1, 2 & 3) and is regulated by the Financial Conduct Authority (Ref 478810).