Landlords searching for buy-to-let mortgages could benefit from President Trump’s Liberation Day tariffs, which have sparked a drop in mortgage rates.

His controversial move is likely to herald further buy-to-let mortgage cuts after the five-year swap dropped from 4.126% to 4.036%, reports Mortgage Solutions.

Mortgage rate cuts

MPowered Mortgages has reduced its fixed rates. For new purchase customers, two-year fixed rates start from 4.05% at 60% loan to value (LTV) with a £999 fee and 4.29% with no fee, while three-year fixed rates begin at 4.04% at 60% LTV with a £999 fee or 4.28% with no fee.

MPowered Mortgages’ Stuart Cheetham explained: “While these tariffs could have a detrimental impact on the UK economy, with increased prices putting extra strain on UK households, there is a silver lining for mortgage borrowers who will see rates come down over the coming week.

“As always, borrowers should seek independent financial advice before deciding on a mortgage deal.”

Falling swap rates

With swap rates falling considerably on the back of Trump’s tariffs, a significant margin has opened up between swaps and mortgage rates, added Mark Harris, of mortgage broker SPF Private Clients.

He said: “If this continues, lenders could respond with a flurry of five-year fixed rates starting with a ‘3’ as opposed to the current position of only one or two priced under 4%.

“This would help affordability and give buyers renewed confidence to make their move.”

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