Buy to let landlords plan refinancing over next year

Four in 10 landlords with buy to let mortgages plan to refinance over the next 12 months, research reveals.

For those preparing to do so, the task involves an average of almost three loans apiece.

The research puts the proportion intending to remortgage or arrange a product transfer at 38%, with an average of 2.9 mortgages each.

Nearly 600 landlords took part in the survey commissioned by Paragon Bank.

Buy to let refinancing

Paragon’s managing director of mortgages Louisa Sedgwick said: “Remortgaging accounted for three quarters of buy to let business during the first half of 2026 and I would expect refinancing to remain a significant feature of the market given the record levels of new business during 2021 and 2022, when landlords took advantage of the Stamp Duty holiday.

“For brokers, that creates an opportunity to work with landlords ahead of upcoming maturities, looking across their portfolios at refinancing requirements as well as wider borrowing needs, such as releasing equity for property improvements or future investment.”

She added: “Upcoming maturities also give brokers an opportunity to look beyond the immediate refinance and consider a landlord’s wider portfolio funding requirements.

“That could include raising capital against unencumbered properties or releasing equity from existing investments to finance improvements or support further investment, subject to lending criteria and affordability.”

Fixed rate mortgage maturities

Five-year fixed rate mortgages taken out during the pandemic property boom are now reaching maturity.

UK Finance figures show that lending for buy to let house purchases reached a record £18.2 billion in 2021.

A further £17.4 billion was lent for purchases in 2022.

Separate industry figures put the value of outstanding fixed rate buy to let mortgages due to mature in the year to the end of August 2027 at £62 billion.

Borrowing against existing properties

Among all landlords surveyed, 43% owned their properties outright.

Another 26% had a mortgage on every property in their portfolio.

The remaining 31% held a mixture of mortgaged properties and homes owned outright.

Paragon said landlords could consider borrowing against mortgage-free properties or releasing equity from existing investments to fund improvements or further purchases, subject to lending criteria and affordability.

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