In short: the Bank of England has held Bank Rate at 3.75% at every meeting this year, most recently on 17 September 2026, but three of the nine committee members voted for a rise. Average buy-to-let fixes were around 5.32% for two years and 5.70% for five years in early September, according to Moneyfacts, well above where they started the year. The next rate decision is on 5 November. For landlords, the more useful question is whether each deal still works if rates stay where they are.
The 30-second version
- Bank Rate: 3.75%, unchanged since December 2025.
- 17 September vote: six to hold, three for a rise to 4%.
- Average buy-to-let two-year fix about 5.32%, five-year about 5.70% (Moneyfacts, week to 8 September 2026).
- Those averages were nearer 4.7% and 5.1% in early March, before markets were unsettled.
- Next decisions: 5 November and 17 December 2026.
Where rates are, and how they got here
Bank Rate was cut to 3.75% in December 2025, and many landlords expected further cuts in 2026. Instead the Bank has held at every meeting, and in September a third of the committee voted to raise rates because inflation has stayed above the 2% target. Buy-to-let pricing moved first: average fixed rates jumped in March when conflict in the Middle East unsettled markets, and lenders pulled products. They have not come back down.
Mortgage pricing follows expectations of future rates, mostly through swap rates, not just Bank Rate itself. That is why fixes can rise even in a month when Bank Rate does not move.
What it does to the numbers
Take a £150,000 interest-only buy-to-let mortgage. At 4.66%, the interest is £6,990 a year, about £583 a month. At 5.32% it is £7,980 a year, about £665 a month. That £82 a month difference, around £1,000 a year, comes straight off your cashflow. On a property earning a modest net yield, it can be the gap between a small profit and a small loss.
It also changes what you can borrow. Lenders test rental income against a stressed interest rate, usually wanting the rent to cover the interest by 125% for basic-rate taxpayers and 145% for higher-rate taxpayers. Higher rates mean lower maximum loans on the same rent, which matters most when you refinance after a refurbishment. We explain the test in detail in stress-testing a buy-to-let mortgage.
Two-year or five-year fix?
There is no right answer for everyone, and this is a decision to take with a mortgage broker. The trade-offs are worth knowing before that conversation:
| Two-year fix | Five-year fix | |
|---|---|---|
| Average rate (Moneyfacts, 8 Sep 2026) | About 5.32% | About 5.70% |
| Certainty | Short; you face rates again in 2028 | Payments known until 2031 |
| Lender stress test | Usually stressed at a higher assumed rate | Often tested at a lower stressed rate, which can allow a larger loan |
| Early repayment charges | Shorter exposure | Longer exposure if you sell or refinance early |
| Suits | Owners expecting rates to fall, or planning to sell soon | Owners who value fixed costs over the next few years |
What we would check now
- Your fix end dates. List every mortgage and when its deal ends. Lenders usually let you arrange the next rate some months ahead, so ask your broker how early you can start.
- The break-even rate. For each property, work out the interest rate at which rent no longer covers interest and running costs. If that rate is close to today's market, the property needs a plan.
- Tax as well as interest. From April 2027, mortgage interest relief for individual landlords is given at 22% rather than 20%, while property income tax rates rise, as covered in the 2027 property income tax rise.
- Rent reviews. In England, rent can now rise only once a year through the formal process, so rent cannot be used to absorb a rate shock quickly.
When we appraise a deal for an investor, we run it at today's rate and at a higher stressed rate. A property that only works if rates fall is really a bet on interest rates.
This guide is general information, not financial or mortgage advice. We are not mortgage brokers or financial advisers. Rates change daily; speak to a qualified broker about your own borrowing.
Common questions
What is the Bank of England base rate in October 2026?
Bank Rate is 3.75%. It was held at that level on 17 September 2026, with six members voting to hold and three for a rise. The next decision is due on 5 November 2026.
What is the average buy-to-let mortgage rate in 2026?
Moneyfacts data for the week to 8 September 2026 put the average two-year buy-to-let fix at about 5.32% and the average five-year fix at about 5.70%. Rates rose sharply in March 2026 and have stayed higher since.
Is a two-year or five-year buy-to-let fix better?
It depends on your plans and appetite for risk. Five-year fixes give longer certainty and are often stress-tested at a lower rate, which can allow a larger loan, but carry longer early repayment charges. Two-year fixes cost a little less today but expose you to rates again sooner. Take advice from a mortgage broker.
We appraise every deal at today's rates and at a stressed rate before an investor commits. If you want a second pair of eyes on the numbers, talk to us.
Get in touch- Bank of England, "Bank Rate maintained at 3.75%: September 2026 Monetary Policy Summary and Minutes", 17 September 2026
- Bank of England, "Bank Rate reduced to 3.75%: December 2025 Monetary Policy Summary and Minutes", 18 December 2025
- Bank of England, "Monetary Policy Committee dates for 2026", 18 September 2025
- Mortgage Introducer, "UK rental supply falls as mortgage rates bite", 14 September 2026 (Moneyfacts averages for the week to 8 September 2026)
- Moneyfacts Group, "Pain for landlords as buy-to-let borrowing costs soar", 30 March 2026
- Pepper Money, "What is interest coverage ratio?", 4 March 2026
- TSB Intermediaries, "Affordability", accessed 2 October 2026 (one lender's published buy-to-let criteria)
Checked on 2 October 2026.