Buy-to-Let in 2026: Why Serious Investors Are Still Expanding

Despite rising regulatory pressure and higher borrowing costs, experienced landlords are not retreating from the market — they are refining their strategies and picking up properties that others are leaving behind.

The Rate Reality

Several major buy-to-let lenders have cut rates in April 2026. West One has brought five-year BTL fixes down to 3.69% on selected products. Landbay has cut across its core range, and TSB has reduced buy-to-let two and five-year fixes significantly. For landlords with strong equity and well-performing properties, the numbers can still work — particularly in regions where rental demand significantly outstrips supply.

How Lenders Assess BTL Applications

Buy-to-let mortgages are assessed differently from residential ones. Lenders place primary emphasis on the rental income the property generates. Typically, they expect that income to cover between 125% and 145% of the monthly mortgage repayment, calculated at a stressed interest rate. This interest coverage ratio test is the key calculation every landlord needs to understand before making an offer. If the rental yield does not clear that threshold, the deal will not pass underwriting regardless of your personal income.

Limited Company vs Personal Ownership

One of the most important strategic decisions for landlords today is whether to buy personally or through a Special Purpose Vehicle limited company. Those applying as an individual can no longer claim tax relief on the mortgage interest they pay on a buy-to-let property. Many landlords are now using the SPV route through a limited company, which allows for greater tax efficiency. For landlords holding multiple properties or paying higher-rate tax, the limited company structure often delivers significantly better long-term returns — but it requires careful planning and proper advice before you commit.

The Outlook

Rental demand across England remains structurally strong. The shortage of quality rental homes, combined with the exit of some smaller landlords from the market, is creating real opportunity for those who are well-financed and properly advised. The landlords doing well in 2026 are those treating their portfolio as a business — with the right mortgage structure, the right properties, and the right professional team around them.

Speak to our specialist buy-to-let mortgage advisers to find out what is achievable for your portfolio.