Now we’ve passed the midpoint of 2026, it’s worth reflecting on how sentiment in the buy-to-let and wider mortgage market swung like a pendulum in the first half of the year.
Things started positively. The bank base rate was reduced to 3.75% and economists were predicting another two cuts by the end of the year. Data from the Bank of England showed the value of new mortgage commitments had increased by 14.2% year-on-year in Q1, hitting £78 billion – this also represented an 11.5% uptick compared to the previous quarter. Put simply, the market was performing well, brokers were busy and lenders were seeing steady demand.
However, recent months have told something of a different story, with mortgage search volumes falling by 15% year-on-year by May as the market started to take a more "cautious approach", according to Twenty7Tec.
If there’s a lesson to be learned, it’s how quickly things can change, and how important it is for lenders and brokers to be able to quickly adapt to changing circumstances.
Sentiment shifts all hinge on uncertainty
Firstly, what’s been behind the sentiment shift across the market? In a word: uncertainty.
In late February and into March, as we know, everything shifted. And fast.
The escalation of the conflict in the Middle East had a notable, rapid impact on oil prices. Financial markets entered a state of flux, and the ensuing economic turbulence completely changed the direction of where everyone expected interest rates to go. We quickly moved from an environment of relative calm, with rates expected to fall gradually (just as they had in 2025), to one in which making any sort of financial prediction became very challenging.
It’s stating the obvious, but there are very few things that can shake confidence and demand in the property market in the way that interest rate uncertainty can. Buyers become cautious, with many adopting a ‘wait and see’ mindset. For those borrowers, five-year fixed rate mortgages can offer a useful way through that uncertainty, giving them longer-term certainty over their monthly repayments and the confidence to move forward.
Meeting the changing needs of the market
Uncertainty may be rife, but that’s not to say that negativity has taken over. As ever during times of turbulence, the pragmatism of the buy-to-let market shines through.
The best brokers, just like the best lenders, don’t waste time worrying about sudden shifts in the economic climate. Instead, they adapt and they find solutions.
Take our five-year fixed rate products, for example. They’re designed to help landlords navigate rate fluctuations and plan for the long-term, offering them what they need during unpredictable times – certainty.
This is really important – offering brokers and borrowers greater choice during periods of uncertainty can give them peace of mind when it comes to their monthly payments. The logic is clear: for the full five years, borrowers know their interest rate will stay exactly the same. That stability is invaluable and means they can plan their cashflow with confidence, knowing their mortgage costs won’t change until the deal ends. Whether they’re managing one property or a whole portfolio, that predictability can make day-to-day planning far easier.
Ultimately, as a lender, it’s about understanding how the needs of brokers and their clients are shifting. It would be too simplistic to say that all borrowers want to fix for longer, but you certainly want to empower them with choice.
The old cliché is that a week is a long time in politics. The same’s true in mortgages – recent months have reminded us how events on the other side of the world can have a huge impact on the business we’re doing here in the UK buy to let space. Responding to these various challenges is something we must all be ready to embrace.
