If your fixed rate is coming to an end, you’ve probably noticed that the mortgage market feels a lot less friendly than it did when you secured that rate 2 or 5 years ago.
Whether you own a single rental or a growing portfolio, getting your buy to let remortgage strategy right is more crucial than ever for protecting your cash flow for years to come.
With conflict continuing in the Middle East and fuel costs rising as a consequence, it’s natural to worry that rates will keep climbing, and while nobody can promise they won’t, you can absolutely control how prepared you are to mitigate the potential damage.
If you’re looking to get yourself in the best possible situation, then you’re in the right place as we’re here to walk you through everything you need to know and do. We’ll also look at how the Renters’ Rights Act, the April 2027 property income tax changes and the 2030 EPC deadline could affect your plans.
If you’d rather skip straight to a conversation, you can book your free initial consultation today with one of our award-winning remortgage advisors to explore your options.
What are the current buy to let remortgage rates?
Like all mortgage rates, buy to let remortgage rates have risen quite sharply during 2026. According to Which?, the average fixed buy to let rate (any term and LTV) climbed from 5% in October 2025 to 5.79% as of October 2026.
To put that 0.79% rise into perspective, imagine you were remortgaging with £200,000 left to pay and 25 years remaining on your term. At this time last year, an average rate of 5% would have cost you around £1,170 a month. With the average rate now at 5.79%, that climbs to £1,264, an extra £94 every month.
Below is a closer look at current average buy-to-let mortgage rates, broken down by fee, term and loan-to-value (LTV) ratio, with data courtesy of Rightmove.
| LTV | Fixed term | £2k fee | £1k fee | £0 fee |
| 75% | 2-year | 5.76% | 5.98% | 6.06% |
| 75% | 5-year | 5.73% | 5.93% | 5.93% |
| 65% | 2-year | 5.46% | 5.33% | 6.04% |
| 65% | 5-year | 5.43% | 5.29% | 5.91% |
| 60% | 2-year | 5.36% | 5.35% | 5.67% |
| 60% | 5-year | 5.37% | 5.3% | 5.43% |
*Data is accurate as of October 10th 2026. Please note, some lender rates may not be included. You can plug the rates above into our repayment calculator to get a rough idea of what you may be paying each month after your remortgage.
Of course, if you’re remortgaging, the impact of rising rates depends on when you took out your current deal.
If you’re coming off a two-year fix you’re likely to see only a modest rise in rates, but those whose five-year fixes are ending could face a far steeper jump in monthly repayments.
This is because mortgage rates were at historic lows back in 2021 primarily due to high liquidity following the onset of the COVID-19 pandemic.
What is driving buy to let remortgage rates?
Buy to let rates have increased rapidly in 2026 as a result of higher inflation and energy prices linked to the conflict in the Middle East between USA and Iran, which caught lenders out after they had expected rate cuts in early 2026.
The high energy prices have caused swap rates to rise rapidly which are a key influence on how lenders price fixed deals.
What are swap rates?
Swap rates, also known as interest rate swaps, are agreements in which two parties exchange interest rate cash flows over a set period. In the mortgage world, banks and lenders use interest rate swaps to manage their own exposure to changes in interest rates.
In simpler terms, a swap rate is a rate based on what the markets expect interest rates to be in the future. If rates are expected to rise, mortgage lenders will look to raise their rates so they don’t lose out.
This means that when swap rates fall, mortgage rates tend to fall too, and when swap rates climb, mortgage rates usually follow.
What’s happened to swap rates in 2026?
The year began with markets expecting a gradual easing in borrowing costs following the Bank of England cutting the base rate four times, from 4.75% to 3.75%, throughout 2025 and further cuts being predicted. In late February, the 2-year swap was consequently around 3.33% and the 5-year around 3.51%.
However, everything changed in March, when the conflict in the Middle East sent energy prices up by their sharpest amount since Russia’s invasion of Ukraine.
Higher energy costs pushed up inflation, and higher inflation made rate cuts unlikely and rises possible. Swap rates responded immediately, rising from around 3.60% before the shock to about 4.25% by mid-March. The move was fast enough that more than 500 mortgage deals were withdrawn in a matter of days, as lenders scrambled to reprice before their funding costs ran ahead of their rates.
April brought a partial retreat as hopes grew that the conflict might be resolved quickly, and markets cut their expected number of Bank Rate hikes.
Over the summer, rates drifted back up rather than recovering, with the 2-year swap around 4.06% in early August and 4.23% by mid-August as inflation climbed to 3.1% in August, which gave the Bank of England little room to cut .
In September, tensions between the US and Iran escalated again, pushing oil prices up and reviving fears that inflation would stay high for longer, and a broader bond sell-off lifted the 10-year gilt yield above 5.25%, its highest since 2007.
Swap rates generally follow gilt yields because both reflect the same expectations for interest rates, and the 2-year swap duly reached 4.26% by 3 September, up from 4.06% a month earlier. Lenders naturally raised their mortgage rates to protect their margins.
As of early October, the 2-year swap sits at about 4.6%, the 5-year at 4.7%, roughly 1.2 percentage points above where they stood before the conflict.
When should you start your buy to let remortgage?
To secure the best deal, ideally start the buy-to-let remortgage process around six months before your current deal ends.
Many lenders will allow you lock in a new rate six months before your current deal ends, and it’s always best to lock in a rate at this point rather than when you’re a couple of months out.
That’s because if rates rise before your current deal ends, you’ll keep the lower rate you’ve already secured, and if they fall, you can switch to the cheaper deal. It’s a win-win!
Most buy to let remortgages take approximately 4 to 8 weeks from application to completion, and that can stretch if there’s a valuation query, a complex portfolio or a limited company involved.
So, if you start the process only a month or two out, you run the risk of moving onto the standard variable rate (SVR)…
How much will it cost if you roll onto the SVR?
When a fixed or discounted deal ends, most lenders will move you onto their standard variable rate automatically. The problem is it’s rarely competitive, and it can be changed at any time.
It can usually cost you hundreds of pounds more every month. For instance, on a £200,000 mortgage over 25 year, an assumed SVR of 7.25% would cost you £242 a month more than a 5.29% fixed rate.
Should you choose a remortgage or product transfer?
A product transfer is best if you want speed and simplicity, or might struggle to pass a new lender’s affordability tests. A remortgage with either your existing lender or a new one, is best if you want to secure the lowest monthly repayments, to raise extra funds or to change your structure.
It’s important to compare the two on total cost, not just the rate, and check what each would do for your cash flow.
A product transfer that saves you the valuation and legal fees can beat a slightly cheaper remortgage rate, especially on a smaller loan. On a larger loan, a lower rate with a new lender can save far more than the extra fees cost.
A product transfer may also be your safest option if something has changed since you last borrowed, such as a drop in rental income, a gap between tenants or a dent in your credit history.
The trick is to compare before you decide. Our brokers can check what your current lender is offering as well as what the wider market has available, so you can see the difference.
Which type of mortgage should you choose?
For most landlords worried about rising rates, a fixed rate is the safest choice because it locks in your payment. Trackers and discount deals can get more expensive as soon as Bank Rate or the lender’s SVR rises.
When rates are rising, the type of deal you choose matters almost as much as the headline number. There are three main types of buy to let remortgage rate, and each suits a different kind of landlord.
Fixed-rate
A fixed-rate buy to let remortgage keeps your interest rate, and therefore your monthly payment, the same for an agreed period, usually 2, 3 or 5 years.
With the Bank of England warning that multiple rises could be likely if energy prices stay high, many landlords are leaning towards fixed mortgages to take the guesswork out of their budgeting.
Who it’s best for: Landlords who want certainty and predictable cash flow, particularly while rates are uncertain and tax bills are rising.
What to watch out for: Early repayment charges if you leave before the deal ends, and you won’t benefit if rates fall during the fixed period.
Is a two-year or five-year fix better?
It’s the most common question we get asked, but unfortunately, there’s no definitive answer.
The main difference is how each deal responds to changes in interest rates. A two-year fix means you’ll return to the market sooner, so if rates rise you’ll move onto a more expensive deal earlier, but if they fall you’ll be able to take advantage of the lower rates sooner too.
A five-year fix gives you longer certainty, which is appealing if you think rates may climb over the next couple of years. The flip side is that if rates drop, you can’t benefit without paying an early repayment charge.
Fees work in a similar way. With a two-year fix you’ll need to factor in remortgage costs, such as product fees and valuation fees, after a shorter period, and you’ll repeat them more often. A five-year fix means you won’t need to budget for these for quite a while.
Your future plans matter too. If you expect to restructure your mortgage soon but aren’t quite ready, a two-year fix gives you a natural point to do it without penalty. With a five-year fix, you’d be tied in for the full term unless you’re willing to pay an early repayment charge.
Landlords who own a number of properties often stagger their deal end dates so they’re not exposed to the whole portfolio repricing in one go. We can help you map this out.
Tracker
A tracker buy to let remortgage follows the Bank of England Bank Rate (currently 3.75%) plus a set margin, so your payment moves whenever Bank Rate does.
Who it’s best for: Landlords who expect rates to fall, or who may sell or refinance soon. Some trackers carry lighter early repayment charges than fixed deals, which gives you more freedom to move.
What to watch out for: Your payments can rise as soon as Bank Rate does, which makes budgeting harder and could squeeze your rental margin. The next Bank of England decision is on 5 November 2026.
Discount
A discount deal gives you a set discount off the lender’s standard variable rate (SVR) for a limited period, so your rate is only as good as the SVR it’s linked to.
Who it’s best for: Landlords who find a competitive deal and are comfortable with some uncertainty. It’s rarely the first choice for buy to let, but it can occasionally be competitive.
What to watch out for: The lender can change its SVR at any time, so your payment isn’t guaranteed and may not move in line with Bank Rate.
Not sure which suits your properties? A broker, like ourselves, can compare all three across the whole market and show you what each would cost over the length of the deal. Get in contact today to get started!
How do lenders assess a buy to let remortgage application?
Lenders look at the property and its rental income first, then at your finances, tenants and credit history. Here are the main things they’ll check…
Loan to value
With most lenders, your loan to value (LTV) must be 75% of the property’s value, and the lower your LTV, the better the rates tend to be.
Here’s a quick example…
A property worth £300,000 with a £150,000 mortgage has an LTV of 50%. At a 75% maximum LTV, the most you could borrow is £225,000, so you’d have £75,000 of headroom before costs.
Rental stress test
Lenders test whether your rent would still cover the mortgage interest at a higher “stress” rate, usually by 125% to 145%, so you need more rent than your actual payment suggests.
This is the part that surprises people most, because lenders don’t just check you can afford your current payment. The test is known as the interest coverage ratio (ICR), and the exact figure depends on the lender and your tax position.
Lenders often apply the lower figure to basic-rate taxpayers and limited companies, and the higher to higher and additional-rate taxpayers.
Here’s how it works on a £250,000 interest-only mortgage, assuming a stress rate of 5.5%:
| At 125% ICR | At 145% ICR | |
|---|---|---|
| Annual interest at 5.5% | £13,750 | £13,750 |
| Rent required each year | £17,188 | £19,938 |
| Rent required each month | about £1,432 | about £1,661 |
Illustrative only. Every lender sets its own stress rate and ICR.
If your rent falls short, you may be offered a smaller loan, which means finding extra cash to repay the difference when you remortgage.
Do your tenants, property and credit history affect a buy to let remortgage?
Yes, all of them can affect which lenders will accept you and on what terms:
- Tenants: Some lenders object to certain tenant types, such as students or those who rely on benefits.
- The property: Lenders consider the condition, construction, lease length (if leasehold) and, increasingly, the EPC rating. HMOs, multi-unit blocks and holiday lets need specialist lenders.
- How long you’ve owned it: Many lenders want you to have owned the property for at least six months before remortgaging.
- Your credit history: A few missed payments don’t automatically rule you out. If you’re worried, read our guide to a bad credit history remortgage.
- Your wider income: Some lenders let you use your personal income to top up rental cover, and your experience as a landlord can help too.
If an application has been declined, don’t panic. Get in contact today and we can explore your options.
How do higher rental yields help your buy to let remortgage?
As you’ll remember from when you initially secured your buy-to-let mortgage, lenders use the expected rental income from a property to decide whether, and how much, they’re willing to lend you.
Lenders will test whether your rent would still cover the mortgage interest at a higher “stress” rate, usually by 125% to 145%, so you need more rent than your actual payment suggests.
The good news, then, is that while mortgage rates may have risen, so too have buy to let yields.
In fact, according to data from Paragon Bank, buy to let yields have reached their highest levels since the first quarter of 2011, rising to an average of 7.22 percent in the third quarter of 2026.
The figures continue an upward trend in rental yields since 2022, reflecting a sustained demand for privately rented homes.
This is important because if your rent falls short, you may be offered a smaller loan, which means finding extra cash to repay the difference when you remortgage.
Here’s a quick look at rental yields across each UK region, so you can see how lenders may assess your affordability depending on where your property is located.
| Region | Avergage Yield |
| East Midlands | 8.1% |
| North East | 8.02% |
| Scotland | 7.95% |
| North West | 7.88% |
| South West | 7.79% |
| Wales | 7.79% |
| Greater London | 5.79% |
| East Anglia | 7.53% |
*data via Paragon Bank
In terms of property type…
| Property Type | Average Yield |
| HMO | 8.8% |
| Multi-unit blocks | 7.36% |
| Flats | 6.66% |
| Terraced houses | 6.46% |
| Detached houses | 4.77% |
*data via Paragon Bank
How do house prices impact your buy to let remortgage?
If house prices have risen significantly since you took out your mortgage or last remortgaged, your loan-to-value (LTV) ratio may have fallen by the time you remortgage again, which could help you secure a better rate.
While house price growth has remained fairly flat over the past year, with the ONS putting the UK average at £273,000, up just 1.4% in the year to July 2026. Over the last two and five years growth has been notable.
According to data from Nationwide, the average house price in 2026 is £274,930 which is up 3.65% from 2 years ago (£265,240) and 12.79% from 5 years ago (£243,750).
It’s worth asking a local estate agent for a free valuation, so you can see what they think your property is worth.
You can then check your latest mortgage statement or online account for the outstanding balance and then subtract that from the valuation given to you by the estate agent to calculate your equity and LTV bracket.
How can you make the most out of your buy to let remortgage?
Most landlords and property investors remortgage because their fixed or discounted deal is ending, but there are other reasons to remortgage too. You can act on these by remortgaging early or when you secure your new deal.
Release equity
When you remortgage, you can release equity by taking out a larger mortgage and keeping the difference as cash, as long as the new loan stays within the lender’s loan-to-value (LTV) limit and you can afford the repayments. This is often known as remortgaging with capital raising.
You can use this cash to:
- Fund improvements that increase the property’s value. This could allow you to raise the rent and, at your next remortgage, move into a lower LTV bracket, which may reduce your monthly payments and boost the profit you make from the property.
- Buy another buy to let property. Use the cash a despot to purchase another property and expand your portfolio.
Here’s how the process could look…
Your buy-to-let property is worth £180,000 and you owe £108,000. You need £18,000 for building, so you remortgage for £126,000, which is 70% LTV. At an illustrative rate of 5.75% over 25 years, your monthly repayment would rise from around £679 to around £793, an extra £114 a month for the £18,000.
One thing to watch is that the whole mortgage moves to the new rate, not just the extra £18,000. So, if you’re remortgaging early and your current deal is cheaper than today’s market, you could end up paying more on the money you already owe.
A mortgage broker can work out the true cost of different routes before you commit.
Change the structure of your mortgage
A buy to let remortgage allows you to change how your borrowing is set up, not just the rate. That might mean switching from interest-only to repayment, moving a property into a limited company or consolidating borrowing across a portfolio. Here’s how each option works:
- Switching from interest-only to repayment, or vice versa. Whether you want to use a repayment mortgage to pay off some of the capital to lower your loan to value or lower your monthly payments with an interest-only mortgage.
- Moving the property into a limited company. A company can change how your profit is taxed, but transferring an existing rental is treated as a sale and means a new mortgage. We cover the costs in the limited company section below, and your accountant should model it before you decide.
- Consolidating borrowing across a portfolio. Some landlords bring several properties onto aligned deal end dates or move them to one lender to simplify things. It can make the paperwork easier, but it can also trigger early repayment charges and put more of your portfolio in one lender’s hands, so it needs weighing up carefully.
- Changing the term or the owners. You may be able to lengthen or shorten the mortgage term to adjust your payments, or add or remove an owner on the mortgage. Changing ownership can involve legal work and tax, so take advice first.
Whichever route you choose, a restructure is assessed like any other remortgage: the lender will test your rental cover and check the loan to value, and fees and early repayment charges still apply.
Whatever your reason, the aim is the same: to make sure the finance supports your investment rather than eating into it.
What’s different about a limited company buy to let remortgage?
The process is the same as for personal borrowers, but lenders ask for company information and apply different criteria.
Here are the main differences:
- Special purpose vehicle (SPV): Most lenders prefer a company whose only business is holding property, which would take the form of an SPV, and some won’t lend to trading companies at all.
- Personal guarantees: Directors are usually asked to guarantee the loan personally, so the company structure doesn’t remove your own liability.
- Rental cover: The rent is often tested at a lower rate, commonly around 125%, which can make borrowing easier to achieve.
- Extra paperwork: Expect to supply company accounts, articles of association and details of directors and shareholders.
Should you move your properties into a limited company?
Only after taking tax and mortgage advice from experts, because moving an existing rental into a company is treated as a sale.
Because of this a transfer can trigger stamp duty land tax and capital gains tax, which when combined together can get very expensive.
Meanwhile, dividend tax rates rose by two percentage points from April 2026 (the ordinary rate is now 10.75% and the upper rate 35.75%), which means you won’t be taking home as much as you previously could when paying yourself from the company.
Companies can deduct mortgage interest in full as a business expense, while individual landlords only receive a basic-rate tax reduction on finance costs (20% today, rising to 22% from April 2027). That’s why many investors favour companies, but it isn’t the right answer for everyone. Your accountant should model the numbers for your situation before you decide, and we’ll gladly work with them to make sure the mortgage side stacks up.
Can you do a buy to let remortgage on several properties at once?
Yes, and if you own more than a couple of buy to let properties it’s often worth thinking about as a single project rather than a string of separate decisions.
This is called a portfolio mortgage, and as it’s treated as a single account, there’s only one interest rate and one repayment to make per month.
Here’s a look at the pros and cons of setting up a portfolio mortgage:
| Pros | Cons |
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Our partners at TLF Specialist Finance can help you arrange a portfolio mortgage, or simply talk you through the pros and cons above in more detail.
How does a buy to let remortgage work step by step?
There are seven main steps, from checking your current deal to completion, which typically takes 4 to 8 weeks, but possibly longer if complications arise.
The process is more straightforward than many landlords expect, especially with a broker handling the legwork.
- Check your current deal. Find out the end date of your current deal and if you’re looking to remortgage early also look at what your early repayment charge would be.
- Get a realistic valuation and rent figure. Ask a local estate and letting agent for a valuation of the property and achievable rent to work out your LTV and rental cover before you apply.
- Talk to a broker. We’ll compare the market, including a product transfer, and show you what’s possible. Ideally do this 6 months before your current deal ends.
- Choose your deal and secure the rate. Your broker submits a mortgage application and, where possible, locks in the rate.
- Valuation and underwriting. The lender values the property and checks your documents and rental cover.
- Mortgage offer. Once approved, you’ll receive a formal offer.
- Legal work and completion. Solicitors handle the transfer and your new lender repays your old one.
Once the process is complete, we’ll continue to monitor your mortgage through the entirety of it’s term and get in contact with you if a better deal ever comes up
What documents do you need?
- Photo ID and proof of address
- Recent bank statements, including those showing rent received
- Details of your current mortgage, such as the balance and lender
- Tenancy agreements and proof of the current rent
- Proof of income, such as tax returns, an SA302 or payslips
- A schedule of properties if you have a portfolio
- Company accounts and details of directors if you borrow through a limited company
Having this ready in advance can take days off the timetable.
What buy to let remortgage mistakes should landlords avoid?
We see the same slip-ups time and again. Steer clear of these and you’ll be ahead of most.
- Leaving it until your deal has ended. Drifting onto the SVR can cost hundreds of pounds a month, as our earlier example showed.
- Chasing the lowest rate and ignoring the total cost. A cheap headline rate with a big product fee can cost more than a slightly higher rate with none.
- Forgetting the early repayment charge. Leaving a deal early can cost thousands, so check the dates before you apply.
- Not checking rental cover first. If the rent doesn’t pass the lender’s stress test, you may be offered less than you expected. Run the numbers before you apply, not after.
- Applying to several lenders yourself. Multiple applications and credit searches can leave marks on your file. A broker can check lender criteria upfront and apply once, to the right place.
- Borrowing the maximum when you release equity. The more you borrow, the more interest you pay and the thinner your rental margin becomes, particularly when tax rates on property income are rising.
- Putting every property on the same expiry date. If everything reprices at once, you’re fully exposed to that month’s market.
- Assuming a product transfer is the best you can do. It’s quick and convenient, but you won’t know if it’s competitive unless you compare.
The common thread is time. The more of it you give yourself, the more options you’ll have.
Why should you use an advisor for your buy to let remortgage?
At The Levels Financial, you’ll work with a dedicated remortgage advisor who will compare over 100 lenders and 28,000 mortgage products to find you the most competitive rate, so your buy to let remortgage keeps your profits as high as possible.
You’ll also receive expert advice on where we think the market may be heading and guidance on what we believe your best option currently is.
Here’s what else you get when you work with us:
- Free, 24/7 mortgage monitoring. After securing your mortgage, we’ll constantly keep an eye on your deal and tell you the second a better option appears.
- Award-winning service. We’re officially the best mortgage broker in the South West for customer service, and we have over 680 five-star Google reviews.
- Flexible appointments. We offer evening and weekend appointments to suit busy landlords.
- Complete financial support. Through our partners at TLF Wealth Management and TLF Specialist Finance, and our protection advisers, we can help with the wider financial picture too.
- A community of landlords. Join one of our free property investor events to meet others in the same position and hear from experts across a range of areas.
If you’d like to explore your option you can also call us on 01458 772 040 or fill out the short form below…
