Buy-to-let returns fall 59% amid higher mortgage rates

Buy-to-let returns are slumping as the cost of borrowing spirals.

Property for rent in a London street
The average buy-to-let mortgage rate for June was 5.45% and hit 6.18% in July.
(Image credit: Getty Images)

Investors are set to make £4,317 less on average from buy-to-let (BTL) property this year compared to 2022 as spiralling mortgage rates take a chunk out of their income.  

A buy-to-let landlord taking out a two-year fixed rate buy-to-let mortgage in June 2023 could expect returns of £2,995 a year, research from personal finance comparison site Finder.com shows.

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Pedro Gonçalves
Contributor

Pedro Gonçalves is a finance reporter with experience covering investment, banks, fintech and wealth management. He has previously worked for Yahoo Finance UK, Investment Week, and national news publications in Portugal.