Buy-to-Let Lending

2025 Q2

Published on 22/10/2025

• In Q2 2025 there were 49,590 new buy-to-let loans advanced in the UK, worth £8.8 billion. This was relatively flat compared with the same quarter in the previous year, down 2.6 per cent by number (0.2 per cent by value).
• The average gross buy-to-let rental yield for the UK in Q2 2025 was 7.26 per cent, compared with 6.9 per cent in the same quarter in the previous year.
• The average interest rate across all new buy-to-let loans in the UK was 5.0 per cent in Q2 2025. This was 2 basis points higher than in the previous quarter, and 19 basis points lower than in the same quarter of 2024.
• Reflecting the downwards movement in interest rates, the average buy-to-let interest cover ratio (ICR) for the UK in Q2 2025 was 210 per cent, up from 192 per cent in Q2 2024 and 201 in the previous quarter.
• The number of BTL fixed rate mortgages outstanding in Q2 2025 was 1.47 million, 5.5 per cent up on a year previously. In contrast, the number of variable rate loans outstanding fell by 18.0 per cent to 463,000.
• At the end of Q2 2025 there were 11,270 buy-to-let mortgages in arrears greater than 2.5 per cent of the outstanding balance. This was down 560 from the previous quarter.
• There were 790 buy-to-let mortgage possessions taken in Q2 2025, up 11.3 per cent on the same quarter a year previously.