- Remortgaging is the market. 39,631 of the 58,051 buy-to-let loans in Q2 2026 were remortgages, 68%. Purchases grew faster on the year (+23%), but fell by 845 on the quarter.
- Fixed rates are expiring in large numbers, UK Finance says. A landlord on 2.5% moving to the Q2 2026 average of 4.82% pays £387 a month more on a £200,000 interest-only loan.
- Cover is still healthy on average: interest cover of 217%, against 221% last quarter. The average hides the cases that are tight.
- On the panel today, the product decides the loan. The cheapest 2-year fix at 75% is stressed at 7.93%; the cheapest 5-year fix at 5.49%. On £1,000 rent at 125%, that is £121,059 against £174,863.
What UK Finance reported for Q2 2026
| Measure | Q2 2026 | Change |
|---|---|---|
| New buy-to-let loans | 58,051 | +20.6% on the year |
| Value of new lending | £10.7bn | +25% on the year |
| Remortgages | 39,631 | +17.6% on the year, +470 on the quarter |
| House purchases | 16,026 | +23% on the year, -845 on the quarter |
| Average rate, new loans | 4.82% | +12bp on the quarter, -18bp on the year |
| Average interest cover | 217% | 221% last quarter, 210% a year ago |
| Average gross rental yield | 7.27% | Broadly flat on the year |
| Loans in arrears of 2.5%+ | 8,390 | -25.6% on the year |
| Possessions | 630 | -20.3% on the year |
Source: UK Finance, buy-to-let update Q2 2026, published 21 October 2026. UK Finance notes that Q2 2025 was artificially low, after borrowers brought loans forward ahead of the stamp duty changes, so the yearly growth flatters the trend.
“Compared with Q1 this year, the market appears more stable, with remortgaging edging up while lending for new purchases eased slightly. Looking ahead, higher borrowing costs are likely weighing down on buy-to-let demand, underpinning flatter lending growth across 2026.”
James Tatch, Head of Analytics, UK Finance
The number most brokers miss: 86,300 product transfers, worth £15.1bn and up 18.5% on the year. That is more than twice the 39,631 remortgages. Every one is a landlord who stayed put, often without anyone checking whether a remortgage would have been cheaper or released more.
Limited company lending grew 60.4% and portfolio landlord lending 38.5%, against 16.7% for individuals. The growth is in the cases that need specialist lenders: SPVs, portfolio underwriting, HMOs and blocks.
London is the tight market: the lowest yield (6.14%) and the lowest cover (191%). That is where a maturing 2021 fix is most likely to fail a new rent test.
Why the remortgage wave matters for brokers
UK Finance puts the rise in remortgaging down to high numbers of fixed-rate loans expiring. Many of those are five-year fixes taken out in 2021, when rates were far lower. These are landlords who fixed at rates that started with a 2 or a 3. Every one of them is a review: a product transfer with the existing lender, or a full remortgage with a new rent test.
The payment shock is real. On a £200,000 interest-only loan, 2.5% costs £417 a month; the Q2 2026 average of 4.82% costs £803. The rent has usually risen since 2021 too, which is why average cover is still 217%. But average cover is an average: the cases that come to a broker are the ones where it is tight.
The rent test is where the case is won
A product transfer usually avoids a new rent test, which is why so many landlords take one. A remortgage brings the full test back, and lenders test different products at very different rates. On the DAS Source panel as at 20 October 2026, single buy-to-let at 75% LTV, ranked on true cost:
2-year fixes
| Lender | Rate | Fee | True cost* | Stress rate | Rent per £100k | ERC |
|---|---|---|---|---|---|---|
| Kensington | 5.93% | 0% | 5.93% | 7.93% | £826 | 3%/2% |
| Fleet Mortgages | 4.79% | 3% | 6.43% | 6.79% | £707 | 3%/2% |
| The Mortgage Lender | 5.74% | £2,495 | 6.44% | 7.74% | £806 | 3%/2% |
5-year fixes
| Lender | Rate | Fee | True cost* | Stress rate | Rent per £100k | ERC |
|---|---|---|---|---|---|---|
| Kensington | 5.49% | 0% | 5.49% | 5.49% | £572 | 5%/4%/3%/2%/1% |
| Landbay | 6.19% | 0% | 6.19% | 6.19% | £645 | 5%/5%/5%/3%/3% |
| The Mortgage Lender | 5.74% | 2% | 6.25% | 5.74% | £598 | 5%/5%/4%/4%/3% |
*True cost: average annual cost over the fixed period on a £200,000 net loan, with the fee added to the loan; excludes ERCs and other fees. Rent per £100k: monthly rent needed at 125% cover at the stress rate. Higher-rate taxpayers borrowing personally are usually tested at 145%.
The 2-year fix may look cheaper on the rate sheet, but at 125% cover it needs £826 a month rent per £100,000 against £572 for the 5-year fix. On £1,000 rent, that is the difference between a £121,059 loan and a £174,863 loan. For a 2021 landlord who needs to keep the same loan, the 5-year fix is often the only product that passes.
What to check on every maturing case
- Product transfer first, then compare. No new rent test and no valuation, but rarely the best price. Run it against the open market on true cost.
- Run every product's own stress rate. The same rent can borrow tens of thousands more on a 5-year fix.
- Look at the tax position. A basic-rate or limited company borrower is usually tested at 125%; a higher-rate personal borrower at 145%. Top slicing from personal income can close a gap on some lenders.
- Start six months out. Many lenders will hold a product for up to six months before completion.
- Check the value. Values have moved since 2021; a new valuation can change the LTV band and the price.
How DAS Source helps
Enter the loan, value and rent once and DAS Source runs every product on the panel through its own stress rate and cover ratio, then ranks what passes on true cost. The rent test is right for every lender, not just the headline rate, which is exactly the problem on a maturing 2021 fix.