The Mortgage Lender has launched some new limited-edition buy-to-let products and reduced rates by up to 0.15% across parts of its fixed-rate range.
That isn’t going to change anyone’s life overnight. But it is another small sign that lenders are starting to compete a little more in the buy-to-let market.
UK Finance has also reported that the average interest rate across all new buy-to-let loans was 4.77% in Q4 2025, down slightly on the previous quarter and lower than a year earlier.
So there’s some movement in the right direction.
In practice, though, I’d be careful about getting too excited.
The rate isn’t the whole deal
I know I say this almost every week, but one of the mistakes investors can make is to look only at the headline rate.
I understand why people do that. It’s the obvious number. It’s the one lenders advertise. It’s the one that makes us feel as if we’re getting a bargain, or being punished, depending on which way it’s gone that week.
But the rate is only one part of the calculation.
You also need to look at the fee, the loan-to-value, the rental stress test, the lender’s criteria, the valuation, whether the property type fits, whether you fit as a borrower, and what happens when the fixed period ends.
A lower rate with a hefty fee may or may not be better than a slightly higher rate with a lower fee. It depends on the size of the loan, the length of the fix, your plans for the property, and whether you’re likely to keep the mortgage for the full period.
That’s where investors get caught out.
They see a cheaper rate and assume it automatically improves the deal. Sometimes it does. Sometimes it just moves the cost somewhere else.
This is where a broker can help
I know I keep saying this, but a good broker is useful, especially in this market.
Buy-to-let lending isn’t just about finding the lowest rate on a comparison table. It’s about finding a lender who’ll actually lend on that property, to that borrower, at the amount needed, using criteria that don’t destroy the deal before it starts.
And criteria can be as important as price.
If you don’t have a broker, or you want a second opinion, I’m happy to recommend mine. Email me at thepropertyteacher@gmail.com and I’ll make the introduction.
Here’s to successful property investing.
Peter Jones
Author, property investor & ex-Chartered Surveyor
P.S. If you’d like help thinking through your buy-to-let strategy properly, you might find my Successful Property Investor’s Strategy Workshop useful.
You can find out more here: https://thepropertyteacher.co.uk/the-successful-property-investors-strategy-workshop/
