Landlord Mortgage Options Expand as Rates Fall
Landlord mortgage options have expanded, offering better rates and more flexibility for investors as the buy-to-let market rebounds. According to new figures from Moneyfacts, the choice of deals has increased significantly – and that momentum could continue if upcoming Budget changes drive more property investors to restructure their portfolios.
Landlord Mortgage Options on the Rise
In October 2025, landlords can now choose from 1,730 fixed-rate mortgage products, including 776 two-year and 954 five-year deals. This marks a dramatic rise from just 841 available a year earlier.
The growing variety reflects renewed confidence in the property finance sector. Moreover, it shows that borrowing conditions are easing after two years of high inflation and tighter monetary policy.
This expansion in choice suggests lenders are once again competing for landlord business – a trend not seen since before the turbulence of 2022. More products mean investors can find rates and terms that better suit their investment goals, whether managing single properties or growing a portfolio.
Falling Rates Offer Welcome Relief
Moneyfacts data shows the average two-year fixed-rate buy-to-let mortgage for limited companies has dropped to 5.04%, down from 6.53% in October 2023. On a year-by-year comparison, rates have fallen from 5.54%, offering much-needed relief to those facing refinancing pressures.
For landlords who locked into higher rates during last year’s market volatility, this downward movement may open the door to potential remortgaging opportunities. Many investors will consider whether now is the right time to refinance. Additionally, the uncertain economic outlook before the next fiscal announcement makes this decision even more significant.
Landlord Mortgage Options Amid Budget Rumours
The market improvements come against the backdrop of speculation surrounding Labour’s upcoming Budget on 26 November. Reports suggest Chancellor Rachel Reeves is considering several tax reforms aimed at addressing a £20–£30 billion gap in the nation’s finances.
Among the most controversial proposals is the plan to introduce National Insurance contributions on landlords’ rental income. Moreover, this measure is estimated to raise around £2 billion for the Treasury.
If introduced, the change could reshape the financial landscape for property investors, particularly those operating as sole traders rather than through limited companies.
Limited Companies on the Rise
Moneyfacts finance expert Rachel Springall notes that any new taxation on rental income would likely accelerate the shift towards limited company ownership among landlords.
“Unlike other reforms that gradually affected the sector, this could be a significant move,” she explains. “It may push more landlords to incorporate their property portfolios to manage costs more effectively.”
This trend is not new. The number of landlords setting up limited companies has grown steadily since the government began phasing out mortgage interest tax relief between 2017 and 2020. For newer investors who entered the market after these changes, incorporation has become almost standard practice. Yet, even with these structural adjustments, profitability remains a challenge.
Landlord Mortgage Options and Tight Margins
Despite lower rates, landlords continue to navigate rising maintenance costs, stricter energy efficiency rules, and shifting tenant expectations. Springall acknowledges that “new landlords may never have benefited from tax relief, but that doesn’t mean they’re not facing their own challenges in achieving a sustainable return.”
The combination of softer lending rates and ongoing regulatory uncertainty creates new challenges for investors. Therefore, they must stay alert to the financial implications of both national and local policy changes. Careful planning and expert advice remain key for anyone entering or expanding in the buy-to-let market.
Experts Warn of Knock-On Effects for Tenants
However, not everyone supports the proposed National Insurance levy. The Independent Housing Policy and Delivery Oversight Committee, chaired by Sir Vince Cable, recently issued a clear warning to policymakers. Moreover, the committee cautioned that taxing landlords further could create unintended consequences for renters.
Cable cautioned: “Putting National Insurance on landlords would most likely lead to higher rents for tenants. In effect, that becomes an increase in taxation on working people.”
Industry observers share this concern and warn that the Treasury’s actions to balance the books may have side effects. Consequently, the burden could shift to tenants already struggling with affordability pressures.
Balancing Policy and Property Investment
As the government prepares to unveil its Budget, the property sector stands at a crossroads. Lower mortgage rates are offering hope of renewed investment, yet looming tax changes risk undermining that progress.
If policy decisions drive more landlords to incorporate, the market could see a rise in professionalisation – but also in costs that eventually reach tenants. Ultimately, the coming months will test how effectively policymakers can balance fiscal responsibility with housing stability.
For now, landlords can take some comfort in improved borrowing conditions and greater deal availability. But as the industry braces for potential reforms, the message is clear: the smartest investors will be those who plan ahead and stay adaptable.
