Buy-to-let mortgages: 2026 outlook

There was an optimistic outlook for mortgage rates at the start of 2026. This was largely attributable to the Bank of England base rate cut in February, which dropped from 4% to 3.75%.

The ongoing conflict in the Middle East is causing legitimate concerns around energy-driven inflation. On 30 April, the Bank of England decided to maintain the base rate at 3.75%. Analysts are now less optimistic about the prospect of further cuts to the base rate in 2026.

For those looking to remortgage in 2026, this could cause some problems. Many people secured mortgages back in 2021 when rates were extremely low. Moving from a rate below 2% to a 5% rate could have a significant impact.

Moneyfacts, a market comparison website, reported that average mortgage rates are increasing. They recommend that borrowers nearing the end of fixed-term deals should act quickly to secure a new deal – the shelf life of mortgage deals is decreasing as lenders face interest rate uncertainty and delaying could add hundreds of pounds to borrowers’ monthly repayments.

Borrowers may need to “act quickly” as mortgage shelf-life plummets, Finance Expert warns, to read more see here.

If you have any questions regarding the above article, please contact Tom Young on 023 8046 1254 or email Tom Young.