Fixed-rate buy-to-let mortgages reprice higher as average new fixes hit 5.59%

Moneyfacts reports the average new fixed-rate mortgage at 5.59%, with the average five-year fixed at 95% loan-to-value at about 6.07%. Mortgage Strategy has also reported lenders repricing fixed and tracker products this week, with some increases of up to around 45 basis points. For landlords, the immediate consequence is practical rather than regulatory: if your buy-to-let fixed rate ends in the next six to 12 months, the replacement cost may already be higher than you budgeted for earlier this year.

This is not a new statutory rule, and the repricing does not change landlord notice periods or rent increase law. The pressure is commercial: higher borrowing costs can affect monthly cashflow, remortgage affordability tests and compliance with existing mortgage terms such as interest cover requirements, portfolio conditions and consent-to-let restrictions. Tax treatment may differ between personal and company ownership, but the debt-servicing issue is immediate in either case.

Build a dated refinance schedule now

Start with a list of every mortgage in the portfolio, including the lender, product type, current pay rate, fixed-rate end date, early repayment charge period, monthly payment and any special conditions. Prioritise mortgages expiring within 30 days, 90 days and 12 months. In London, this matters because lender appetite and valuations can vary sharply by property type, lease length and licensing position.

Stress-test each property, not just the portfolio average

Model at least two scenarios: +100 basis points and +200 basis points above your current assumptions. A refinance from a legacy fixed rate such as 2.49% or 3.19% to above 5.5% can remove most of the monthly surplus on lower-yield stock. Run the numbers asset by asset, especially where service charges, shorter leases or licensing costs make one property weaker than the rest.

Check all costs, not just the headline rate

Do not wait until the fixed rate ends before speaking to a broker or lender. Product transfers and remortgage offers can often be explored in advance, and delays in a repricing market can be costly. Ask for the product fee, valuation fee, legal fee, early repayment charge and affordability assumptions in writing. On smaller loans in particular, a fee such as £1,999 can materially alter the effective cost of the deal.

Review mortgage conditions before rates create a breach

If you are close to lender limits, check the small print now. Portfolio landlords should review terms linked to aggregate borrowing, minimum rental cover and the number of mortgaged properties. Landlords who once lived in a property and later let it should confirm any consent to let is still valid. These are not new legal rules, but they are common pressure points when rates rise quickly.

Keep rent reviews legally separate from mortgage pressure

Managing agents and landlords should avoid treating higher mortgage costs as a shortcut to a rent rise. If a rent review is appropriate, use the correct route for the tenancy: a contractual rent review clause, where valid, or the correct statutory process with the right notice and prescribed form where required. The mortgage repricing itself does not change the law on rent increases.

Tighten arrears monitoring early

Higher borrowing costs do not automatically justify higher rent, and many tenants are already managing stretched household budgets. A sensible operational step is to flag tenants who have paid late twice in six months, review payment patterns monthly and agree in advance what support or escalation steps you will use. Keep a written record of any payment plans or variations.

Rework appraisals on current rates

If you are buying or selling, rerun the appraisal using today’s borrowing costs rather than last quarter’s. On acquisitions, test the deal at current pricing and at another 1% higher. On disposals, compare the refinance cost, tax position, void risk and leasehold costs against the option of holding through a lower-margin period.

Two urgent checks for the next 90 days

Within 14 days, produce a refinance schedule for every property with a fixed rate ending by spring 2026 and obtain updated quotes for the nearest expiries.

Within 30 days, stress-test each property at +100bps and +200bps and identify any likely affordability, covenant or cashflow failures.

Within 90 days, update your written policy on rent reviews, arrears handling and reserves so your agent, broker and accountant are working from the same assumptions.

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