Product availability for buy-to-let mortgages reached a file excessive and the typical two-year fastened charge has dropped beneath 5% for the primary time since September 2022, in line with the most recent evaluation by Moneyfactscompare.co.uk
Total buy-to-let product availability (fastened and variable) rose to 4,144 offers, its highest rely on our digital information (November 2011). Deeper evaluation reveals a bigger amount of five-year fastened offers, versus two-year fastened offers.
Common buy-to-let fastened charges over two- or five-year fastened phrases general fell month-on-month, for the fourth consecutive month. The common two-year fastened charge is at its lowest level since September 2022, whereas the typical five-year fastened charge is at its lowest level since October 2024.
| Purchase-to-let market evaluation | |||||
| Product numbers | Jun-23 | Jun-24 | Dec-24 | Might-25 | Jun-25 |
| BTL product rely (fastened and variable) | 2,330 | 2,935 | 3,231 | 3,926 | 4,144 |
| Two-year fastened charge BTL all LTVs | 621 | 1,014 | 1,129 | 1,385 | 1,419 |
| Two-year fastened charge BTL at 60% LTV | 74 | 80 | 91 | 86 | 86 |
| Two-year fastened charge BTL at 75% LTV | 290 | 442 | 539 | 695 | 721 |
| Two-year fastened charge BTL at 80% LTV | 80 | 124 | 155 | 180 | 189 |
| 5-year fastened charge BTL all LTVs | 914 | 1,253 | 1,410 | 1,729 | 1,733 |
| 5-year fastened charge BTL at 60% LTV | 95 | 89 | 83 | 85 | 84 |
| 5-year fastened charge BTL at 75% LTV | 406 | 582 | 709 | 882 | 905 |
| 5-year fastened charge BTL at 80% LTV | 76 | 137 | 168 | 211 | 218 |
| Common charges | Jun-23 | Jun-24 | Dec-24 | Might-25 | Jun-25 |
| Two-year fastened charge BTL all LTVs | 5.80% | 5.53% | 5.35% | 5.04% | 4.98% |
| Two-year fastened charge BTL at 60% LTV | 5.35% | 5.25% | 4.87% | 4.57% | 4.46% |
| Two-year fastened charge BTL at 75% LTV | 5.86% | 5.59% | 5.35% | 4.99% | 4.96% |
| Two-year fastened charge BTL at 80% LTV | 6.44% | 6.26% | 5.93% | 5.78% | 5.62% |
| 5-year fastened charge BTL all LTVs | 5.76% | 5.55% | 5.46% | 5.33% | 5.29% |
| 5-year fastened charge BTL at 60% LTV | 5.06% | 4.93% | 4.74% | 4.57% | 4.51% |
| 5-year fastened charge BTL at 75% LTV | 5.85% | 5.58% | 5.52% | 5.37% | 5.32% |
| 5-year fastened charge BTL at 80% LTV | 6.48% | 6.23% | 5.91% | 5.83% | 5.75% |
| Information proven is as on the first accessible day of the month, until said in any other case. Supply: Moneyfactscompare.co.uk | |||||
Rachel Springall, finance commentator at Moneyfactscompare.co.uk, mentioned: “Landlords looking for a brand new buy-to-let mortgage could also be happy to see an increase in product availability, with the selection of offers hovering to its highest level on file. Debtors involved about rates of interest might also discover it encouraging to see the typical two-year fastened buy-to-let charge has fallen beneath 5% for the primary time since September 2022 and each the two- and five-year fastened charges have fallen for the fourth consecutive month.
“The common five-year fastened buy-to-let charge is now at its lowest stage in over six months, however year-on-year the speed has not dropped as viciously as its two-year counterpart. Lenders monitor swap charges to gauge future charge expectations, and after they drop it encourages mortgage charge cuts.
“Decrease buy-to-let charges may create a constructive sentiment for brand spanking new and current landlords, nonetheless, there will probably be immense strain on some to show round a revenue sooner or later.
“Landlords should guarantee their property has a minimal Power Efficiency Certificates (EPC) ranking of C, by 2030 on the newest, in line with the Authorities’s newest proposals. For this reason a buy-to-let funding won’t work for unintended landlords who usually are not capable of fork out the prices to make renovations.”
Traders sometimes anticipate to make higher earnings if investing in a number of properties, however by the identical notion, it may open them to extra danger if property costs plummet and they’re locked right into a mortgage or don’t have any tenant for an prolonged time period, in line with Springall.
She continued: “Landlords coming off a low charge fastened deal and needing to refinance will see rising rents as the simplest strategy to increase margins. Landlords may even want to remember the Renters Proper Invoice which is predicted to return into pressure both later this 12 months or in 2026.
“The brand new legal guidelines embrace abolishing part 21 evictions and fixed-term tenancies, but in addition new guidelines on making hire will increase. The laws is designed to guard tens of millions of renters, giving them extra safety, however understandably this could be the ultimate straw for current landlords, resulting in them exiting the sector.”
