Buy-to-let lending in the UK saw a significant rebound in 2025, with 22.7% more new BTL mortgages advanced year-on-year. Remortgaging drove most of the activity as landlords locked into more competitive rates amid falling BTL pricing.
BTL Lending Bounces Back
Despite ongoing reports that the rental sector is in decline, latest data from UK Finance tells a different story. There was a 22.7% jump in the number of new buy-to-let mortgages advanced between June and September 2025 compared to the same period a year earlier, suggesting the market may be stabilising.
A total of 59,467 new buy-to-let mortgages were advanced to landlords during this period. The majority — 40,697 — were remortgages, indicating that landlords are actively reviewing their finances and seeking more competitive deals as rates ease.
Mortgages taken out for new purchases also increased, rising by 4% year-on-year. While the growth in purchases is more modest than the remortgaging surge, it suggests some landlords are cautiously expanding their portfolios.
Record Product Choice for Landlords
Landlords benefited from a particularly wide range of buy-to-let products in the third quarter of 2025, with data showing 4,144 fixed and variable deals available in June — the highest number on record since 2011.
Most landlords continue to prefer the security of fixed mortgage rates. There were 1.44 million fixed-rate BTL deals outstanding in Q3 2025, up 2.3% compared to the same period in 2024.
Greater product choice means more competition between lenders, which generally translates into better rates and terms for borrowers. If you're a landlord approaching the end of your current deal, this is an ideal time to shop around for a lower rate.
Average BTL Rates Continue to Ease
Buy-to-let mortgage rates, in line with the wider mortgage market, have been easing in recent months following six cuts in the Bank of England base rate since summer 2024.
The average rate across all new buy-to-let mortgages stood at 4.85% between June and September 2025 — down 15 basis points from the previous quarter and 37 basis points lower than the same period in 2024.
Lower borrowing costs appear to be filtering through to improved returns for landlords. Rental yields rose to an average of 7.15% in Q3 2025, compared with 6.93% in the same quarter the previous year.
If you're a buy-to-let landlord looking to remortgage or purchase a new property, our fee-free advisors can search the whole market to find you the best deal.
Frequently Asked Questions
- Is buy-to-let still a good investment in 2026?
- With rental yields rising to 7.15% and mortgage rates easing, the fundamentals for buy-to-let are improving. However, it depends on your personal circumstances, location, and the regulatory environment. Professional advice is recommended.
- When should I remortgage my buy-to-let property?
- Ideally, start looking at your options 3-6 months before your current deal ends. This gives you time to secure a competitive rate while your current deal is still in place.
Sources & References
- UK Finance mortgage data — UK Finance
- Private rented sector data — ONS
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