Buy-to-let fixed rates dipped to their lowest level since September 2022, Moneyfacts analysis shows.
The average two- and five-year fixed rates stand at 4.88% and 5.21% respectively.
Overall buy-to-let product availability (fixed and variable) rose to 4,597 deals, the highest number recorded.
Rachel Springall, finance expert at Moneyfacts, said: “Those landlords who locked into a fixed rate deal in 2023 and are due to refinance will find the average two-year fixed rate has fallen from 6.64% to 4.88%, and the rate has edged slightly lower than 5% since the start of June 2025 (4.98%).
“However, uncertainties on the path of interest rates, and the changes to mortgage interest tax relief embedded by April 2020, meant some landlords would have grabbed a five-year fixed deal for peace of mind.
“In September 2020, the average five-year fixed rate was 3.20%, but today the difference in rate is around 2% more, at 5.21%. The availability of buy-to-let products has climbed to a record-high, which includes options at the higher end of the loan-to-value spectrum where landlords only need to muster up a 20% deposit or equity.”
A worrying 26% of landlords sold at least one property in 2024 while just 8% of landlords bought, according to a survey from the National Residential Landlords Association (NRLA).
Springall added: “The cost of finance is a fundamental part of becoming a landlord, as tax changes over the years have led to a more challenging situation for investors to hit desirable profit margins.
“The speculation on more changes to hit private landlords in the upcoming Budget will also lead to more concerns.
“Those who do not have buy-to-lets held in a limited company could get hit if National Insurance Contributions (NICs) are levied on pre-mortgage profits.
“Hamptons had previously estimated that a limited company would be the structure of choice for the next generation of investors.
“The growing number of set-ups will only escalate if the Government makes the NICs levy rumour a reality.