A week ago we noted that buy-to-let fixed pricing hadn’t yet followed funding costs upward, and that compressed margins tend not to last. They didn’t. Five-year limited-company fixes have now been reissued at higher rates, with the previous generation of products withdrawn.

The move underneath is the bigger story. GBP SONIA swaps have kept grinding higher: the five-year is now somewhere around 4.3–4.5% depending on source, up roughly forty basis points since late June, with the two-year close behind. That is a substantial shift in a month, and the pass-through so far — a little over ten basis points on five-year fixed product rates — is only a fraction of it. If swaps hold at these levels, there is more repricing to come rather than less.

The most useful detail for anyone comparing products is which end of the range moved. The no-fee five-year fixes, which we’ve argued for several notes running are the most efficient choice once fees are amortised over the fix, were withdrawn and replaced at higher rates. The fee-laden options with eye-catching headline rates largely survived. That is the usual shape of a repricing cycle: the products that were genuinely good value are the first to go, because they are the ones being taken up.

Two things follow, and they pull in the same direction. First, waiting has had a measurable cost this month — a no-fee five-year fix available in late June is simply not available now, and its replacement is meaningfully dearer over the term of the fix. Second, an offer agreed before this move is worth more today than it was a week ago, and the case for holding it rather than hoping for something better has strengthened again.

The one qualification worth stating plainly: a low headline rate paired with a percentage-based arrangement fee still tends to lose to a slightly higher rate with no fee, and that arithmetic does not change just because rates have risen. If anything, a rising market makes fee-heavy products look better than they are, because the headline gap widens while the fee stays fixed as a share of the loan. Do the five-year sum before being persuaded by the rate on the poster.

Not advice - for our own record. This is an internal market note kept by BSL Property Ltd to track conditions relevant to our own property investments. It is general commentary only, not financial, mortgage, investment, tax or other professional advice, not a personal recommendation, and not a financial promotion or an offer of any product. Any rate levels mentioned are approximate, are our own summary of publicly reported market conditions, may be out of date, and are not quotes available to you. Always obtain advice from an FCA-authorised adviser before making any borrowing or investment decision. BSL Property Ltd is not authorised or regulated by the FCA.