The latest Moneyfacts figures show that overall BTL product availability, covering fixed and variable products, rose to 4,597 deals.
This is the highest count since electronic records began at the firm in 2011.
The number of two-year fixed rates came to 1,547 and five-year fixed rates numbered 1,860.
The report added that BTL products at 75% and 80% loan to value (LTV) had a record volume of deals.
At 75% LTV, the number of two-year deals has increased from 514 in September last year to 818 in September this year, while five-year fixed rates went from 698 to 974 in the same period.
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Going up to 80% LTV, two-year fixed rates have increased from 130 to 207, and the increase has gone from 145 to 246 for five-year fixed rates.
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BTL market analysis |
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Product numbers |
Sep 2022 |
Sep 2023 |
Sep 2024 |
Aug 2025 |
Sep 2025 |
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BTL product count (fixed and variable) |
2,075 |
2,475 |
3,186 |
4,487 |
4,597 |
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Two-year fixed rate BTL all LTVs |
535 |
700 |
1,100 |
1,518 |
1,547 |
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Two-year fixed rate BTL at 60% LTV |
84 |
72 |
77 |
99 |
103 |
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Two-year fixed rate BTL at 75% LTV |
253 |
347 |
514 |
808 |
818 |
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Two-year fixed rate BTL at 80% LTV |
85 |
74 |
130 |
193 |
207 |
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Five-year fixed rate BTL all LTVs |
842 |
1,110 |
1,399 |
1,838 |
1,860 |
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Five-year fixed rate BTL at 60% LTV |
107 |
83 |
93 |
108 |
112 |
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Five-year fixed rate BTL at 75% LTV |
409 |
592 |
698 |
955 |
974 |
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Five-year fixed rate BTL at 80% LTV |
126 |
80 |
145 |
231 |
246 |
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Average rates |
Sep 2022 |
Sep 2023 |
Sep 2024 |
Aug 2025 |
Sep 2025 |
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Two-year fixed rate BTL all LTVs |
4.47% |
6.64% |
5.35% |
4.91% |
4.88% |
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Two-year fixed rate BTL at 60% LTV |
3.69% |
6.48% |
4.86% |
4.35% |
4.31% |
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Two-year fixed rate BTL at 75% LTV |
4.46% |
6.64% |
5.37% |
4.88% |
4.87% |
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Two-year fixed rate BTL at 80% LTV |
5% |
7.3% |
6.08% |
5.58% |
5.54% |
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Five-year fixed rate BTL all LTVs |
4.72% |
6.49% |
5.33% |
5.23% |
5.21% |
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Five-year fixed rate BTL at 60% LTV |
3.87% |
5.95% |
4.65% |
4.43% |
4.43% |
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Five-year fixed rate BTL at 75% LTV |
4.76% |
6.57% |
5.38% |
5.27% |
5.24% |
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Five-year fixed rate BTL at 80% LTV |
5.28% |
7.09% |
6.01% |
5.7% |
5.67% |
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Data shown is as at the first available day of the month, unless stated otherwise. Source: Moneyfactscompare.co.uk |
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Landlord will be ‘encouraged’ by BTL pricing improvement but headwinds remain
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said landlords looking to refinance or enter the market “may be encouraged” to see the drop in BTL pricing.
She pointed to landlords who locked into a fixed rate in 2023 who are due to refinance, with the average two-year fixed rate falling from 6.64% to 4.88%.
However, some landlords who opted for five-year fixed rates due to the uncertainty of interest rates and changes to interest tax relief in 2020 may face a shock, as the average five-year fixed rate stood at 3.2% but is now at 5.21%.
“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 BTL properties 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,” Springall noted.
She said the “mounting pressure” on landlords is “stark”, with recent UK Finance figures showing that BTL mortgage repossessions were up by 11% year-on-year.
Springall said there were “growing reasons for landlords to seriously consider leaving the market, or to reduce their portfolio”.
Figures from the National Residential Landlords Association (NRLA) found that 26% of landlords sold at least one property in 2024, while just 8% of landlords bought.
“The path for landlords remains uncertain, as many will be struggling to keep up with legislation, which can come at a financial cost and time drain to keep up with changes. However, it doesn’t stop there, as many are waiting with bated breath on the decisions surrounding the Renters’ Rights Bill.
“One of the major areas here is the abolition of Section 21 ‘no-fault’ evictions, which will offer greater security to renters, because landlords will no longer be able to evict tenants without providing a reason,” she noted.
Yesterday, housing minister Matthew Pennycook rejected the majority of the amendments to the Renters’ Rights Bill tabled by the House of Lords as the legislation moved a step closer to receiving royal assent.
Springall also pointed to the Decent Homes Standard, which will ensure landlords keep their properties up to specific heat, safety and functionality requirements.
However, she added that since April 2020, landlords have been prohibited from letting properties with an Energy Performance Certificate (EPC) rating below E, so there would have “already been progress to make the private rental sector (PRS) more energy-efficient, no doubt saving renters some cash on their energy bills as a result”.
“New or existing landlords would be wise to seek advice to assess how any moves in the sector will impact them. If they want to exit the sector, they will need to understand the costs involved, which include any agent fees and capital gains tax,” she said.
