Buy-to-Let Mortgage Rates Rise as Market Uncertainty Reduces Lender Deals
Posted on Sunday, 15 March, 2026
Landlords looking to refinance or secure new buy-to-let mortgages may face fewer options and rising borrowing costs following recent global market volatility linked to the conflict involving Iran.
Mortgage Product Choice Falls
New figures from Moneyfacts show that the number of available buy-to-let mortgage deals has dropped significantly in early March. Available products fell from 5,660 deals on 1 March to 5,081 by 12 March, a reduction of 579 mortgage options in less than two weeks.
Some lenders have temporarily withdrawn deals while they reassess pricing, while others have relaunched products with higher interest rates. Financial markets have become increasingly volatile due to geopolitical tensions, prompting lenders to review where mortgage pricing should sit.
Rates Beginning to Increase
Alongside fewer mortgage products, interest rates have also started to edge upwards.
According to the latest data:
- Two-year buy-to-let mortgage rates increased from 4.66% to 4.77% between 1 and 12 March.
- Five-year fixed buy-to-let rates rose from 5.05% to 5.19% during the same period.
These increases are being driven by movements in swap rates and government bond yields, which influence mortgage pricing across the market.
Global Events Affecting the UK Property Market
The unrest in the Middle East has pushed energy prices higher, raising concerns that inflation could rise again. This has changed expectations around the Bank of England’s base rate, with markets now seeing less chance of interest rate cuts in the near future.
As a result, lenders are taking a more cautious approach to mortgage pricing across both residential and buy-to-let sectors.
What This Means for Landlords
For landlords planning to refinance or expand their portfolios, the changing mortgage landscape highlights the importance of reviewing borrowing options sooner rather than later.
With mortgage product choice shrinking and rates beginning to climb, securing a competitive deal quickly could help avoid further increases if market volatility continues.
