There were 59,467 new buy-to-let (BTL) loans advanced in the UK worth £10.9bn in the third quarter of 2025, UK Finance data reveals.

The latest data shows that there was a 22.7% increase compared with the same quarter in the previous year.

It also found that the average gross BTL rental yield for the UK in Q3 2025 was 7.15 per cent, compared with 6.93 per cent in the same quarter in the previous year.

The average interest rate across all new BTL loans in the UK was 4.85% in Q3 2025.

This represented a decrease of 15 basis points than in the previous quarter, and 37 basis points lower than in Q3 2024.

Reflecting the downwards movement in interest rates, the average BTL interest cover ratio (ICR) for the UK in Q3 2025 was 215%, up from 195% in Q3 2024 and 210 in the previous quarter.

Meanwhile, the number of BTL fixed rate mortgages outstanding in Q3 2025 was 1.44 million, 2.3% up on a year previously.

In contrast, the number of variable rate loans outstanding fell by 9.7% to 488,000.

At the end of Q3 2025 there were 10,420 BTL mortgages in arrears greater than 2.5% of the outstanding balance, down 850 from Q2 2025.

The data also found that there were 900 BTL mortgage possessions taken in Q3 2025, up 28.6% from 700 in the same quarter a year previously.