A clearer path ahead for Buy-to-Let?

Originally published by Mortgage Solutions

The Bank of England’s recent decision to cut Bank Base Rate (BBR), even though widely expected, still feels like another significant step forward in what has been a steadily improving environment for the mortgage market, and especially for those of us operating in the buy-to-let (BTL) sector.

For advisers and landlord borrowers alike, the downward trend in rates we’ve seen over recent months – particularly in swap rates – has already been feeding through into product pricing. And if this continues, we could be entering a period that delivers far greater certainty and opportunity than we’ve had for some time. 

At Fleet, we’ve already responded to this shift with a series of rate reductions across all elements of our buy-to-let mortgage range, passing those improvements directly on to landlord borrowers via advisers.

But we’re not the only ones. Across the wider market, we’ve seen average rates coming down across various time frames, and again with the mood music around rates being that they are likely to continue in a southerly direction, then as we move through 2025, that should also continue to be the trend.

This change is having a real impact, not only in making deals more accessible for landlords, but also in restoring confidence in a sector that has been under sustained pressure since the economic shockwaves wrought by the ‘mini Budget’. 

Importantly, affordability is beginning to look more favourable for landlord borrowers. Improved interest cover ratios (ICRs) mean rental incomes are again providing a more comfortable cushion against mortgage costs.

A foundation for healthy buy-to-let activity 

This is good news for landlords looking to maintain or grow sustainable portfolios. It also eases the remortgage challenge faced by many who had previously found themselves stuck on high reversion rates, unsure whether switching was feasible under current affordability criteria.

That dynamic has shifted considerably, and advisers are perfectly placed to help their clients seize this moment. 

Let’s be clear: the direction of travel isn’t guaranteed. But there is increasing evidence that we’ve moved through the most volatile period. With more than 1.6 million fixed rate mortgage deals due to expire this year – many of them in the buy-to-let space – advisers have a real opportunity to step in, deliver value, and guide landlord clients towards more favourable terms. 

Remortgaging activity is already on the rise, and the forecast from UK Finance is that we’ll see a 30% increase in external remortgages in 2025.

Landlords are back in the game 

This is a strong signal that landlords are re-engaging with the market. Many are reviewing their options not just to reduce outgoings, but to release equity and reinvest, taking advantage of rising rental demand and yields that continue to hold up in many regions.

The foundations for buy-to-let portfolio growth are being laid again, and advisers who are proactive in conversations with their clients can support that expansion. 

Of course, there are still headwinds – regulatory changes such as the Renters’ Rights Bill will introduce new considerations for landlords. But compared to the challenges of 12-18 months ago, the outlook today is much more positive. Lower product pricing certainly sends a signal of stability and intent that can be used by advisers as a springboard for deeper client engagement. 

There’s no substitute for good advice in this environment. Landlords need confidence not just in their product options, but in how those choices will impact their portfolio strategy, cash flow, and long-term planning. As the rate picture improves, advisers have the tools to offer that clarity and, in doing so, support landlords in unlocking opportunity. 

Our message is simple: things are moving in the right direction. If advisers lean in to that momentum and work closely with their clients, there is real potential to support more refinancing, help deliver savings, and enable further investment. This is the time to act.