Buy-to-let fixed rates near 6%: why landlords with deals ending by September 2027 should act early

Average fixed mortgage rates are effectively back at 6%. Moneyfacts data reported by Mortgage Strategy on 2 October 2026 put the average two-year fixed rate at 5.96% and the average five-year fixed rate at 5.98%. That matters most for landlords with a buy-to-let product ending in the next 3 to 12 months, because several lenders also increased fixed, tracker and discounted rates that week, with reported rises ranging from roughly 10 to 62 basis points.

Why mortgage end dates now need active tracking

The immediate point is simple: treat every mortgage end date across your portfolio as a live deadline. A rate that passed affordability on Monday can fail by Friday if a lender withdraws a range, changes stress testing or reprices before the application is submitted. That risk is sharper in London because larger loan sizes magnify even small rate movements. On a £400,000 interest-only loan, a 0.50% rate rise adds about £2,000 a year in interest costs; a 1.00% rise adds about £4,000 a year.

What is confirmed here is the pricing shift. What is not confirmed is any sector-wide legal deadline or regulatory rule change. This is a market repricing story, not a new law.

Check any deal ending before 30 September 2027

For single-property landlords, the priority is to identify any fixed-rate expiry, reversion date or discounted period ending before 30 September 2027. Do not leave this until the final month. Many lenders allow remortgage or product transfer discussions well before expiry, and early applications can matter when products are being withdrawn. The source summary confirms multiple withdrawals, repricings and end-date extensions that week, but it does not name every affected lender or each product deadline, so a property-by-property review is safer than relying on a broad market view.

Portfolio landlords should treat this as a risk-register issue

For portfolio landlords and property teams, this is not just a finance task. Create or update a schedule showing, for each property:

• lender
• current rate
• expiry date
• repayment type
• monthly payment
• any early repayment charge position
• current rent
• whether the loan still passes lender affordability at current rates

If you operate through a limited company, include the borrowing entity and any personal guarantees. If you run HMOs or higher-cost stock in boroughs such as Newham, Waltham Forest, Brent or Southwark, add licensing fees, compliance renewals and utility exposure to the same model, because these costs can push a marginal property into negative monthly cashflow.

Slower house price growth weakens the refinance cushion

The same report said annual UK house price growth had slowed to 0.8%, with an average price of about £273,000. That does not prove London values are falling, and the source cited does not provide London-specific pricing, but it does weaken the assumption that capital growth will offset higher finance costs. If a remortgage also faces a down-valuation, the landlord may have fewer lender options, a worse loan-to-value band or a larger equity requirement.

Specialist borrowers may see lender choice narrow faster

This is particularly relevant for specialist borrowers. The source notes that several lenders increased rates on credit-repair and specialist products. If you have adverse credit, complex income, recent incorporation, ex-local authority flats, short leases or non-standard construction, do not assume a like-for-like refinance will still be available. In London, those issues appear disproportionately in converted flats, high-rise blocks and mixed-tenure estates. A product withdrawal in those segments can remove the best exit route very quickly.

Letting agents should update records where refinance delays affect management

Agents should also tighten their records. If you fully manage a property, update the landlord file when a mortgage moves from fixed to variable, when a refinance is delayed or when a lender changes conditions. This is not because agents police mortgage compliance generally, but because a landlord under payment pressure is more likely to defer repairs, dispute contractor invoices, delay licence renewals or push for aggressive rent increases. Those are management and compliance risks. Keep a written note of any lender communication, broker advice, product transfer quote and application outcome.

Do not use a rent rise to solve the problem without evidence

Do not respond by increasing rent blindly. In London, some postcodes will absorb an increase; others will not, especially where supply has improved or tenants are already stretched. Model the mortgage first, then compare the current rent against local evidence at street or block level. If an increase is justified, use the correct tenancy route and notice period. The source material does not set out rent notice rules, so landlords should follow the tenancy terms and current statutory process rather than improvising to meet a higher mortgage payment.

Rate choice is strategic, but delay now has a cost

There is no confirmed requirement to choose a longer fix, but planning matters. A two-year fix may preserve flexibility; a five-year fix may reduce refinance risk if rates stay elevated. The right answer depends on break costs, expected hold period, tax position and monthly coverage. What has changed is the cost of delay. When lenders are repricing by 20, 30 or 60 basis points in days rather than months, pipeline management becomes part of risk control.

Three actions to take this month

First, within 7 days, extract every mortgage product end date, reversion date and early repayment charge expiry across your portfolio, and flag anything ending in the next 12 months.

Second, within 14 days, obtain remortgage or product transfer indications from your current lender and at least one broker, and ask whether any quoted product is at risk of withdrawal.

Third, before the next rent review or budget cycle, re-run cashflow on each property at +1% and +2% above the current contracted rate, including insurance, licensing, repairs and a realistic void allowance.

This article is general information, not regulated mortgage, tax or legal advice.