The market for UK buy-to-let mortgages is showing renewed signs of stability, creating a more favourable environment for property investors. Average fixed buy-to-let mortgage rates have now fallen to their lowest levels since September 2022, while the number of available buy-to-let mortgage deals has reached a record high.
This combination of cheaper borrowing and broader choice offers investors a compelling entry point into the UK rental sector, despite ongoing regulatory and tax discussions.
Falling Rates, Rising Options
These are the lowest averages in nearly three years, a welcome change for landlords who locked into higher rates during 2023. For context, two-year fixed rates were above 6.6% just last year.
At the same time, total product availability has surged to 4,597 buy-to-let mortgage deals, the highest since records began in 2011. This includes stronger representation at higher loan-to-value tiers (75% and 80% LTV), offering landlords more flexibility with deposits and refinancing options.
What This Means for Investors
For new and existing landlords, this shift is encouraging:
While upcoming legislation, such as the Renters’ Rights Bill, and possible tax changes in the Autumn Budget, remain watch points, the overall market is stabilising in ways that benefit those seeking long-term growth.
The private rental sector continues to experience strong tenant demand, with limited supply supporting rental growth. For overseas investors, the combination of high rental yields, easing finance costs, and steady capital appreciation underlines the UK’s enduring appeal as a buy-to-let destination.
Those considering portfolio expansion, or entering the UK market for the first time, are likely to find conditions in late 2025 among the most balanced in recent years.
|
Product numbers |
Sep-22 |
Sep-23 |
Sep-24 |
Aug-25 |
Sep-25 |
|
BTL product count (fixed and variable) |
2,075 |
2,475 |
3,186 |
4,487 |
4,597 |
|
Two-year fixed rate BTL all LTVs |
535 |
700 |
1,100 |
1,518 |
1,547 |
|
Two-year fixed rate BTL at 60% LTV |
84 |
72 |
77 |
99 |
103 |
|
Two-year fixed rate BTL at 75% LTV |
253 |
347 |
514 |
808 |
818 |
|
Two-year fixed rate BTL at 80% LTV |
85 |
74 |
130 |
193 |
207 |
|
Five-year fixed rate BTL all LTVs |
842 |
1,110 |
1,399 |
1,838 |
1,860 |
|
Five-year fixed rate BTL at 60% LTV |
107 |
83 |
93 |
108 |
112 |
|
Five-year fixed rate BTL at 75% LTV |
409 |
592 |
698 |
955 |
974 |
|
Five-year fixed rate BTL at 80% LTV |
126 |
80 |
145 |
231 |
246 |
|
Average rates |
Sep-22 |
Sep-23 |
Sep-24 |
Aug-25 |
Sep-25 |
|
Two-year fixed rate BTL all LTVs |
4.47% |
6.64% |
5.35% |
4.91% |
4.88% |
|
Two-year fixed rate BTL at 60% LTV |
3.69% |
6.48% |
4.86% |
4.35% |
4.31% |
|
Two-year fixed rate BTL at 75% LTV |
4.46% |
6.64% |
5.37% |
4.88% |
4.87% |
|
Two-year fixed rate BTL at 80% LTV |
5.00% |
7.30% |
6.08% |
5.58% |
5.54% |
|
Five-year fixed rate BTL all LTVs |
4.72% |
6.49% |
5.33% |
5.23% |
5.21% |
|
Five-year fixed rate BTL at 60% LTV |
3.87% |
5.95% |
4.65% |
4.43% |
4.43% |
|
Five-year fixed rate BTL at 75% LTV |
4.76% |
6.57% |
5.38% |
5.27% |
5.24% |
|
Five-year fixed rate BTL at 80% LTV |
5.28% |
7.09% |
6.01% |
5.70% |
5.67% |
Source: Moneyfactscompare.co.uk