By Gavin Richardson, Managing Director of MFB Mortgage Finance Brokers, shared his expert commentary with the National Landlord Investment Show on where mortgage rates may be heading in the wake of Trump’s tariff wars — and weighed in on key questions for investors including: should you fix your mortgage now or wait?
What BTL mortgage rates are around at the moment?
The market offers landlords a good range of BTL mortgage options. Despite money market volatility, lenders have worked hard to ensure there is a solution available for almost every circumstance. Rates are changing more regularly than normal (but what is normal anymore), which is expected when SWAP Rates fluctuate as they have done over the last few months.
Do you agree with the forecasters?
While there’s a range of predictions for rates, the general consensus from the experts we follow is that we’d have 3 Base Rate cuts in 2025, settling at 4%. However, with the recent turbulence introduced by Trump’s “Liberation Day” tariffs, plus rising energy, fuel and water costs impacting consumer spending, inflation rising then falling again throughout the remainder of the year, the prediction has recently adjusted to 3 more Base Rate reductions in 2025 (4 in total), settling at 3.75%. Of course, SWAP Rates are sensitive to these changes, which is why the overall trajectory of mortgage rates is downward, albeit slowly.
While this is good news for borrowers, the wider economic outlook is unlikely to be plain sailing. The main concern with the tariffs for the UK is increased costs of goods or materials (in addition to the National Insurance contribution and minimum wage changes), which could slow down growth, increasing the likelihood of an economic slowdown.
Should investors fix now or wait a bit?
The issue with waiting is that, in these turbulent times, it often doesn’t seem to pay off. Some landlords can afford to sit another year on their SVR at circa 7% and take the hit on their profits, others can’t. Ultimately, it comes down to personal circumstance: your lender’s SVR, your attitude to risk, your property investment plans and how much time you’re willing to spend monitoring rates. In our experience, it’s not usually worth waiting, and the stability that comes from securing a new rate is greater than any financial gain you may get 6 months down the line.
Any other advice for investors – new and existing?
My 3 main points of advice to landlords in the current climate are:
- Be realistic, not optimistic about the value of your properties. Valuers are extremely risk-averse at the moment, and we’re seeing a few down-valuations despite most experts expecting house prices to increase.
- Even if you’re not due a remortgage, now is a great time to review your portfolio and identify opportunities and limitations within it. Some landlords are offloading low-performing properties to raise capital to invest in higher-yielding types like HMOs. Remember, lenders will look at your background portfolio even if you’re just mortgaging 1 property, so it’s important to ensure it’s fortified.
- Don’t be seduced by headline rates! In order to make affordability calculations work, lenders are adding hefty arrangement fees to products (some even 7%!). Ask your broker to calculate the total cost over the full mortgage term to confidently identify the best rate for you.
Gavin Richardson goes beyond his comments in a comprehensive interview with the new UK Property News Channel, sharing expert guidance on navigating the evolving 2025 mortgage landscape. The discussion covers the potential impact of the Renters’ Rights Bill on mortgages, explores new regulatory developments, and provides vital insights into specialist lending — including HMOs, holiday lets, and green mortgages — offering crucial advice for property investors adapting to the changing market. Watch the latest episodes talking all things mortgages here.
And finally, staying informed and consulting expert mortgage advisors is essential when making property investment decisions. Attending events like the National Landlord Investment Show are crucial for connecting with specialist property service providers and staying up to date on key issues shaping the UK property market.
The National Landlord Investment Show is landing in multiple locations across the UK in 2025 including Birmingham, London, Bristol and Manchester. Attendee registration is open for all 2025 show dates.
Register for your free tickets here…
Established in 2013, the National Landlord Investment Show is the UK’s Number One property investment exhibition, bringing together thousands of landlords, investors, and property professionals throughout the UK. For more information about 2025 shows, exhibition or sponsorship opportunities, visit www.landlordinvestmentshow.co.uk
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