UK Buy-to-Let Mortgage Rates Fall as Lenders Cut Rates, June 20

UK buy-to-let mortgage rates dropped across multiple lenders on June 19, 2026, with rate cuts ranging from 0.1% to 0.3%. The Mortgage Works, Accord Mortgages, and HSBC led the reductions. However, Virgin Money stopped offering new BTL mortgages, signalling mixed signals in the rental property finance market.

Major Lenders Cut Rates Across Fixed Products

The Mortgage Works reduced rates by up to 0.26% on selected two-, three-, and five-year fixed-rate products for both BTL and limited company BTL ranges. The lender’s two-year fixed BTL remortgage product dropped 0.1% to 3.49% at 65% loan-to-value. Accord Mortgages cut rates by up to 0.3%, with two-year fixed rates now starting from 4.54% and five-year rates from 4.68%. HSBC, TSB, Coventry for Intermediaries, and NatWest also reduced selected BTL products by 0.1% to 0.13%.

Limited Company BTL Rates Fall Sharply

Limited company BTL products saw steeper cuts than standard BTL offerings. The Mortgage Works’ two-year fixed limited company product fell 0.26% to 4.98% at 75% loan-to-value with a £3,995 lender fee. BM Solutions decreased limited company BTL rates by up to 0.1%. However, The Mortgage Works increased its portfolio landlord stress rate from 4.75% to 5.00% for existing portfolios, suggesting tighter lending criteria for larger investors.

Market Exit Signals Caution Among Lenders

Virgin Money announced it will no longer offer new BTL mortgages, marking a significant withdrawal from the rental property finance sector. This move contrasts with rate cuts from competitors and suggests some lenders are reassessing BTL lending appetite. According to the Scottish Association of Landlords, the market remains active with multiple providers adjusting terms, though the landscape is shifting.

What This Means for Landlords

Lower rates reduce borrowing costs for buy-to-let investors refinancing or purchasing new properties. Two-year fixed rates now starting at 4.54% offer more affordable entry points than earlier in 2026. However, Virgin Money’s exit and stricter stress testing suggest landlords should act quickly to secure deals, as lender availability may tighten. Independent mortgage brokers can help navigate the changing product landscape and find the best available rates.

Final Thoughts

UK buy-to-let rates fell 0.1% to 0.3% in June, with Accord Mortgages offering two-year fixed from 4.54%. Virgin Money’s market exit signals caution, so landlords should refinance or purchase soon before rates stabilise or lender appetite shrinks further.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.