Rising Borrowing Costs Hurt Landlords Significantly
Unrest in the Middle East has pushed UK buy-to-let mortgage pricing higher. Data compiled by Filmogaz.com shows sharp moves in March.
Market movements and numbers
The average two-year fixed buy-to-let rate rose from 4.6% at the start of March. It stood at 5.2% on 26th March. That increase adds about £1,100 a year on a £250,000 loan repaid over 25 years.
Five-year fixed rates climbed from 5.0% to 5.6% in the same period. That level is the highest since January 2024. Overall product choice also narrowed, with roughly 1,300 fewer deals available since early March, leaving 4,332 options.
Policy deadlines and energy targets
The Renters’ Right Act comes into force this May. Landlords must prepare for new regulatory duties.
Owners are also expected to invest in energy efficiency. Many will aim to reach an EPC C rating by October 2030.
Expert analysis and outlook
Rachel Springall, a finance expert, told Filmogaz.com the market has seen “absolute mayhem.” She added that numerous buy-to-let deals were pulled from sale. Analysts warn that Rising Borrowing Costs Hurt Landlords Significantly.
Jeni Browne, business development director at MFB, told Filmogaz.com recent volatility has pushed back expectations for meaningful price falls by about a year. She said a stabilising situation could allow a Bank of England base-rate cut later this year. That would likely ease swap rates and feed through to buy-to-let pricing. However, Browne warned rates would probably remain higher than at the start of 2026.
Risks if tensions escalate
Browne outlined a downside scenario. An escalation could trigger up to three base-rate rises this year. That would add roughly 1.5% to fixed mortgage pricing. Such moves would squeeze landlords’ margins further.
Practical steps for landlords
Experts urge landlords to act proactively. Those with remortgages due in six months should review options and seek to lock rates early. Speaking with a specialist broker can help find competitive deals, restructure portfolios, or consider limited-company borrowing.
