There are signs of life in the buy to let mortgage market.
Not fireworks. Not bunting. Not estate agents dancing in the street, thankfully. But a definite sense that lenders are trying a bit harder than they were.
Recent UK Finance figures showed 59,489 new buy to let loans were advanced in Q4 2025, worth £11.2 billion. That was up 18.2% by number compared with the same quarter a year earlier, although much of the growth was in remortgaging rather than new purchases. Average gross buy to let yields also edged up to 7.18%, from 6.99% a year earlier.
So, on paper at least, the market hasn’t fallen over.
But, as ever, the detail is where the fun starts.
Lenders Are Competing Again
A few lenders have been trimming rates, launching limited edition products, and widening criteria.
The Mortgage Lender, part of Shawbrook, has launched limited edition buy to let products and cut rates by up to 0.15%, with two-year fixed rates starting from 3.79%. Those products include different fee options, including a 5% completion fee.
The Mortgage Works has introduced new two-year tracker products, including purchase and remortgage options up to 65% loan to value with a 1% fee, while also cutting selected fixed buy to let rates.
TSB has also moved into portfolio buy to let lending for investors with up to 10 mortgaged properties, with lending up to 75% loan to value and loans from £25,000 to £1 million.
This is all encouraging. But encouraging doesn’t mean easy.
Why This Is Happening
Lenders need business. Many investors are refinancing, and lenders want their share of that market.
But lenders also know the buy to let sector is more complicated than it used to be. Higher rates, tax changes, regulation, licensing, energy standards, and affordability tests have all made the numbers tighter.
So we are seeing more competition, but not a return to the easy lending days.
The market is becoming more selective.
Experienced investors, limited companies, portfolio borrowers, HMOs, multi-unit properties and specialist cases may find more options than before. But the lender will still want the deal to stack up.
What Should Investors Take From This?
Probably that lenders are open for business, but only for the right sort of business.
That’s not necessarily a bad thing. A more selective lending market can be frustrating, but it can also force us to be more disciplined. The days of assuming finance will be easy have gone, at least for now.
This isn’t advice, obviously, but it may be worth speaking to a good broker before assuming a deal won’t work, or before assuming it will.
There are more options appearing.
But the numbers still need to behave themselves.
By the way, if you don’t have a mortgage broker, or you’d like a second opinion, I’ll be very happy to put you in touch with my very good mortgage broker.
Just email me: thepropertyteacher@gmail.com and I’ll happily 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/
