Bank of England cuts interest rates to 3.75%: What it means for the buy-to-let market in 2026

As the Bank of England cuts interest rates, Steve Cox, our Chief Commercial Officer, believes this will mark a promising start to 2026 for landlord borrowers:

“The Bank’s decision to cut Bank Base Rate today will come as little surprise given recent market sentiment and the broader economic signals pointing in this direction. In many ways, a number of lenders have been ahead of this particular curve having been actively pricing it into products. We’ve seen a flurry of mortgage rate cuts across the residential and buy-to-let sectors over the last week or so perhaps in anticipation of this decision and in an attempt to grow volume and pipeline as we move into 2026. In the buy-to-let space, product pricing continues to improve, supported not just by this rate change, but by swaps which are increasingly aligned with the view that further cuts could follow into 2026.

“For landlords, this is a positive way to end the year, and a promising start to 2026. With greater certainty following the Autumn Statement – including clarity on tax changes that won’t bite until April 2027 — and with the Renters’ Rights Act coming into force next year, any opportunity to reduce monthly mortgage costs will be welcomed. Landlords coming to the end of two-year deals in particular will find a much more competitive rate environment than they did in 2023 or early 2024, and this should support renewed purchase and refinance activity in the months ahead.”