Buy-to-let mortgage rates in October 2026
The average 2-year fixed buy-to-let rate was 5.63% and the average 5-year fix 6.01%, across all loan-to-values. A year earlier, in September 2025, they were 4.88% and 5.21%.
Rates fell steadily through 2025, and the average 2-year fix was down to 4.66% at the start of March 2026. They then rose sharply later that month as markets reacted to the Middle East conflict, and have climbed further since. Five-year fixes now cost more than two-year fixes, which suggests markets expect rates to stay higher for longer.
What sets your rate
- Your deposit. A 40% deposit (60% loan to value) usually gets a noticeably lower rate than the standard 25%.
- The fee. Many of the lowest rates come with large fees, often a percentage of the loan. Always compare the total cost.
- How long you fix for. Two-year fixes are cheaper right now, but you'll remortgage sooner, possibly at a higher rate, and lenders usually stress-test them at a higher rate, so you can borrow less.
- You and the property. Limited companies, HMOs, flats above shops and first-time landlords often pay more.
Worked example: a low rate with a big fee
Rightmove's figures for 31 October 2026 show 2-year fixes at 75% loan to value averaging 4.57% with a 5% fee, against 6.07% with no fee. On a £200,000 loan the fee is £10,000. The lower rate saves 1.5% a year, or £3,000 a year interest only, so £6,000 over the two years. The fee-free deal works out about £4,000 cheaper. Big-fee deals usually only pay off on large loans or longer fixes.
Remortgaging soon?
Many landlords who fixed in 2021 and 2022 at under 3% are now coming off those deals. On a £200,000 interest-only loan, moving from 2.5% to 6% adds about £580 a month. The rise also makes the stress test harder to pass, so check how much you can still borrow in the buy-to-let mortgage calculator, and what the property keeps after tax in the Section 24 calculator.
Questions landlords ask
What is the average buy-to-let mortgage rate?
In October 2026 the average 2-year fixed buy-to-let rate was 5.63% and the average 5-year fix 6.01%, across all loan-to-values, according to Moneyfacts.
Are buy-to-let mortgage rates higher than residential?
Usually, yes, because lenders see letting as riskier. Buy-to-let deals also tend to have bigger fees and need a larger deposit, normally at least 25%.
Should I choose a 2-year or a 5-year fix?
Two-year fixes are cheaper right now, but you remortgage sooner and lenders often stress-test them at the pay rate plus 2%, so you may borrow less. A 5-year fix gives certainty and is usually tested at the pay rate. A broker can compare both for your situation.
How often do you update these rates?
Every month, when Moneyfacts publishes its new averages. The rates shown are for October 2026, checked on 1 November 2026.
Sources
- PropertyWire: Two-year fixed mortgage rates approach 6% threshold (14 October 2026), Moneyfacts figures
- Rightmove: current average buy-to-let mortgage rates (Podium data, 31 October 2026)
- Moneyfacts: Pain for landlords as buy-to-let borrowing costs soar (30 March 2026)
- Moneyfacts: Choice of buy-to-let mortgages rises to a record high (24 June 2025)
- Moneyfacts: Buy-to-let rates drop as landlords brace for Budget (October 2024)
Last updated 13 November 2026.