Mortgage Soup fires the questions at Dave Rogers, national account manager at Bank of Ireland for Intermediaries.

Mortgage Soup (MS): How do you expect the performance of the UK buy-to-let market to unfold this year? Are we seeing a rebound?

Dave Rogers (DR): We’ve seen a definite uplift in activity over the past six or so months. The buy-to-let sector has remained resilient despite rate volatility, and even with the increase to the stamp duty surcharge, we’re now seeing signs of renewed momentum. Zoopla’s March 2025 Rental Market Report confirmed that the annual UK rental growth rate stands at 6.6%, with rents now averaging £1,226 per month. London continues to lead with year-on-year growth of 8.4%, but even more affordable regions like the North East and Yorkshire and the Humber are performing strongly.

This rental strength is encouraging landlords back into the market. We’ve also seen tenant demand remain robust, particularly in urban areas where supply is heavily constrained. When yields are healthy and demand is steady, landlords start looking for ways to expand or optimise their portfolios – and that’s exactly what we’re seeing now.

MS: How do you see the progress of swap rates and BBR expectations impacting the buy-to-let mortgage market?

DR: The forward-looking indicators are giving us some cause for cautious optimism. At Bank of Ireland, our mission is to support our business and corporate customers as they navigate this changing landscape. We have a range of supports, expertise and resources to help.

Initially, markets had priced in two cuts for 2025. Now, with geopolitical tensions and falling swap and gilt yields, there’s speculation about more concerted activity or a third cut. If we do see BBR at 3.75% by year-end, this will likely translate into cheaper borrowing costs for landlords.

That potential for lower rates is already prompting advisers and their clients to revisit remortgage conversations. It’s a chance to lock in more affordable deals before the market moves again.

MS: What remortgage opportunities are available right now for landlords, and how can advisers offer support?

DR: There’s a real window of opportunity for advisers to add value. A significant volume of two- and five-year fixed rates are due to mature this year, many of them set at higher stress-tested levels. With the interest rate environment becoming more favourable, landlords are looking for strategic remortgage options to reduce monthly outgoings or unlock equity.

Bank of Ireland for Intermediaries can help landlords looking to remortgage without additional borrowing through our Like-for-Like Buy to Let Remortgage. There is no minimum income requirement, and we’ll consider rental income that is at least 125% of the monthly interest for Interest Cover Ratio (ICR) applications.

We’re seeing particular demand for five-year fixed rates, which offer longer-term affordability and greater certainty. This is especially valuable for landlords with more than one property, managing multiple repayments. Advisers who can present tailored scenarios – including top-slicing or capital raising for future investments – are in a great position to deepen client relationships and grow their remortgage business.

MS: You mentioned top slicing. Can you explain how it’s helping landlords?

DR: Top slicing is proving to be a critical affordability tool, particularly in cases where rental income alone doesn’t meet the standard Interest Coverage Ratio (ICR) tests. By considering a landlord’s surplus earned income alongside rental income, lenders can offer larger loans or support refinancing where rental income doesn’t quite stretch far enough on its own.

At Bank of Ireland for Intermediaries, we’ve refined our top slicing approach to give brokers and landlords more flexibility. It’s particularly helpful for higher-income borrowers or those transitioning from residential to buy-to-let, as well as landlords in high-value markets like London where yields can be tighter.

MS: Are you seeing more first-time landlords?

DR: Absolutely. This has been helped by the professionalisation of the sector and the tools advisers have to help them get started. In fact, we’re seeing more first-time landlords entering the market – either as part of a long-term investment plan or due to lifestyle changes, such as inheriting a property or converting a former home into a rental.

What’s essential here is guidance. Advisers can really differentiate themselves by helping new landlords understand the structure of their investment, the pros and cons of personal versus limited company ownership, and how to manage mortgage products effectively. Lenders like us are keen to support this, with competitive products and underwriting approaches that don’t hold new entrants back.

MS: What role are five-year fixed rates playing in the current market environment?

DR: Five-year fixes are helping to solve a number of affordability challenges right now. Because they typically carry lower stress rates in affordability assessments, they allow landlords to borrow more and lock in certainty amid an unpredictable macroeconomic backdrop.

MS: Finally, how is Bank of Ireland for Intermediaries supporting brokers in the buy-to-let market?

DR: Service has always been our cornerstone, and in this market, it matters more than ever. We know brokers are under pressure to deliver fast, reliable solutions to clients, particularly when it comes to more complex cases. That’s why we continue to invest in strong relationships, clear communication, and consistent decision-making.

Our underwriters are accessible, our BDMs are proactive, and our technology supports a seamless submission process. We’re also constantly reviewing our proposition to ensure it meets both market and broker needs.