The average 2-year fixed rate has reached its highest level in a year, while the 5-year rate is at its highest point in two years

Buy-to-let (BTL) mortgage rates have risen significantly in recent weeks, with product availability also declining, according to data from Moneyfactscompare.co.uk.

Average 2- and 5-year fixed rates have risen since the start of March 2026.

The average 2-year fixed rate has reached its highest level in a year, while the 5-year rate is at its highest point in two years.

Moneyfacts said borrowing costs for landlords have risen notably, with repayments on a £250,000 loan over 25 years now nearly £1,100 higher annually compared with the start of March.

At the same time, buy-to-let product availability has dropped sharply.

The number of available deals declined by nearly 1,300 since the start of the month, with total product numbers dropping to 4,332.

Product choice was last below 5,000 in November 2025.

The data also showed increases across loan-to-value (LTV) bands, with average 2-year fixed rates rising to 5.29% and 5-year fixed rates to 5.63%.

The changes come as landlords prepare for additional regulatory requirements, including the introduction of the Renters’ Rights Act in May 2026.

Landlords are also expected to invest up to £10,000 per property to meet a minimum EPC rating of C by October 2030.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: Soaring borrowing costs will cause pain to landlords this year, as they join millions of consumers facing higher mortgage repayments.

This is terrible news, as rising costs could lead to higher rental payments for tenants, or a drop in the pool of properties available for rent if landlords decide enough is enough and sell off their portfolio, she said.

The unrest in the Middle East has caused absolute mayhem in the residential mortgage market, buy-to-let rates are also being hiked, and hundreds of deals have been pulled from sale, she said.

The positive sentiment entering 2026 has been shattered, and landlords not only have to face higher borrowing costs, but also prepare themselves for the Renters’ Rights Bill, which comes into effect at the start of May 2026, she said.

She added: Those who were to take out a mortgage now compared to the start of this month will face higher repayments of £1,100 more a year.