The Bank of England raised Bank Rate from 3.75% to 4% on 5 November 2026. For landlords, especially those with a fixed rate ending in the next year, the question is less "what happens next?" and more "is my refinancing plan ready?"
What has changed for landlords
Buy-to-let pricing was already moving before the decision. Moneyfacts figures reported by Mortgage Solutions on 5 November 2026 show average buy-to-let rates have moved from the 4% range into the 5% range since late February, with the average three-year fix up from 4.16% to 5.54%.
Lenders quoted in the same report said funding costs had been rising for weeks and there was "no reason to assume" the rate decision ends that process. In short: waiting for a better moment is a gamble, not a plan.
Why the rental stress test matters more now
Most buy-to-let lenders check that the rent covers the mortgage interest by a set margin, known as the interest cover ratio (ICR), tested at a "stress" rate. When rates rise, the same rent supports a smaller loan. That can mean:
- a remortgage that no longer releases the equity you expected
- a shortfall that needs topping up from personal income ("top slicing", offered by some lenders)
- a better result on a longer fix, as many lenders stress five-year fixes differently from two-year deals
- a trade-off between a higher product fee and the loan size you can achieve
Limited company landlords may see different ICR tests from personal-name landlords, so the right structure can change the numbers. Our buy-to-let affordability and ICR guide explains how lenders work it out.
Portfolio landlords: lenders want the full picture
If you own four or more mortgaged buy-to-let properties, most lenders will review your whole portfolio, not just the property being refinanced. Up-to-date rents, mortgage balances and expiry dates in one schedule make that review faster and help us spot which loans to tackle first.
Quick tips
- List every expiry date. Start looking three to six months before each fix ends.
- Check your rents. A current tenancy agreement at market rent can help the stress test.
- Compare product transfer and remortgage. Staying with your lender is not always the cheapest or most flexible route.
- Plan around tax changes. Property income tax rises from April 2027 affect cash flow, so take tax advice alongside mortgage advice.
- Remember the landlord register. It starts rolling out region by region from 15 December 2026, beginning in the West Midlands.
See how we restructured a large portfolio in our Liverpool 22-property consolidation case study, download the free limited company and portfolio landlords guide, or read more on our portfolio landlord mortgages page. Our CeMAP-qualified advisers search the whole market for landlords. Most buy-to-let mortgages are not regulated by the FCA.
Sources
- Mortgage Solutions, 5 November 2026: Landlords warned 'no reason to assume' end of rising costs as base rate hits 4%
- Which?, 4 November 2026: What's happening to buy-to-let mortgage rates?
- Bank of England: Monetary Policy Summary and minutes
- Bank of England: Interest rates and Bank Rate
To talk it through, contact us or start your enquiry.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.