Current buy-to-let mortgage rates for UK and International buyers: July 2025

Buy-to-let mortgage rates are falling in 2025. That’s making property investment more affordable and increasing the return on investment you can earn. It also means that leveraging – using a mortgage to make your money go further – is becoming an even more viable choice.

News from July 2025 shows just how far rates are falling, and indicates that more price reductions are likely to follow in the next 12 months.

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What interest rates are available for buy-to-let mortgages?

Some recent examples of mortgage rates coming down for buy-to-let investors include the latest cuts from Paragon Bank to their two-year fixed, 75% loan-to-value (LTV) products. The new rates are, according to Mortgage Solutions:

• Interest rates for single properties now start at 4.24%
• Interest rates for Houses in Multiple Occupation (HMOs) start at 4.59%
• That is a mortgage rate cut of up to 0.11%

Another example has been offered by Zephyr Homeloans, which now offers the following products, as reported in Mortgage Solutions:

• Two-year fix at 65% LTV, 2.54% interest + 7% fee
• Five-year fix at 65% LTV, 4.39% interest + 7% fee
• Two-year fix for HMOs at 65% LTV, 2.69% interest + 7% fee

If you prefer to use one of the biggest names in the market, Barclays has announced the following cuts, reported in Landlord Today:

• Two-year fixed purchase-only at 75% LTV, 4.58% interest
• Five-year fixed purchase-only at 75% LTV, 4.15% interest
• Remortgaging rates cut by up to 0.49%, now starting from 4.17%

That’s just three examples, but they make it clear that the rates on mortgages from all types of lenders are trending downwards. This is good news for investors that will help you maximise your return on investment.

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Can investors from overseas access buy-to-let mortgages in the UK?

UK buy-to-let mortgages are available to all investors who meet the eligibility criteria, no matter where in the world they are based. It is perfectly possible to get a UK mortgage if you live abroad to invest in property – in fact, it is an extremely popular and secure choice for overseas investors.

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Why are mortgage rates falling in the UK?

Mortgage rates are falling as the Bank of England’s base rate of interest falls. There have been multiple cuts in the last 12 months, and mortgage providers can provide cheaper products as a result.

This follows a two-year period where mortgage rates were high and the cost of investing in UK buy-to-let property increased. Now, rates are back down towards the historic average as the economy stabilises, making this a great time to buy UK property for sale.

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Will buy-to-let mortgage rates keep falling in the future?

Likely, there are still some reductions in rates to come in the future. The Bank of England’s Governor, Andrew Bailey, has been clear that he favours further reductions in the base rate of interest. He said in July 2025: “I think the path [for interest rates] is down.”

We have seen in the past that rates are reduced after interest rates are cut. In some cases, cuts have come before rate reductions as banks compete to offer the best rates and secure customers.

However, that does not necessarily mean that it is worth waiting to invest. The best properties in the most desirable locations are rising in value all the time. The sooner you buy, the cheaper they will be and the more you will earn through capital appreciation and rental yields.

You may be able to save a small amount on mortgage rates by waiting until 2026, but you will have to spend more overall, and you will earn less. The best time to invest in a long-term prospect like property is always as soon as possible.