Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
March Reset Still Impacts Buy-to-Let Lending
The market reset that occurred in March 2026 continues to shape the buy-to-let (BTL) lending landscape, according to a report by Mortgage Solutions. The article highlights that volatility is now seen as a constant backdrop for lenders, brokers, and borrowers, rather than a temporary disruption.
At the start of 2026, there was a broad expectation that the Bank of England would deliver several base rate cuts during the year. This led borrowers to become more comfortable with shorter-term fixes and tracker products. However, the article notes that this certainty has since disappeared, and lenders are now operating in an environment where market sentiment and confidence can shift rapidly.
The report points to ongoing instability in the Middle East, pressure on oil prices, and political uncertainty in the UK as factors contributing to market unpredictability. These issues have made it difficult for markets to form a clear view on inflation and future monetary policy, directly impacting mortgage pricing. Lenders are now more cautious, often waiting for sustained periods of stability before making significant pricing decisions, which has slowed the pace of rate reductions.
For brokers and their clients, the article suggests that expectations must adjust, as the assumption that pricing will steadily decrease throughout the year is now less certain than it was earlier in 2026.
Buy-to-Let Market Shows Resilience
Despite the wider uncertainty, the BTL purchase market remains resilient. The article states that there is a consistent level of landlord activity, with approximately a third of applications relating to purchases rather than just refinancing. Research from Hamptons is cited, showing that investor purchases are increasing as landlords buy properties from other landlords. This trend indicates that professional investors are still finding opportunities in the current market.
The report also notes that professional investors have historically adapted to changes in tax policy, regulation, affordability pressures, and financing structures. The response to the Renters’ Rights Act is mentioned as an example of this adaptability.
For UK letting agents and inventory clerks, these developments suggest ongoing activity in the BTL sector, despite broader market uncertainty.
Source: Mortgage Solutions