Four in 10 landlords plan to refinance buy to let mortgages

Four in 10 landlords are planning to refinance their buy to let property over the next year, research from Paragon Bank has found.

It says that 39% of landlords expect to remortgage or switch products during 2026.

More than half of landlords holding four or more buy to let mortgages, (53%), say they plan to refinance, compared with 27% of those with between one and three properties.

Big year for BTL mortgages

Paragon’s managing director of mortgages, Louisa Sedgwick, said: “The research highlights how 2026 will be another big year for maturing mortgages, with remortgaging and product switches driving buy to let business.

“This is driven by the buoyant market from 2021, when the Stamp Duty holiday led to the strongest market for buy to let house purchase on record.

“Much of that business was written on five-year fixed-rate mortgages.”

She added: “While many landlords plan on remortgaging just one property, we do see that plenty of others may have more.”

More landlords remortgage

Paragon says the findings in the same quarter five years earlier, showed just 27% of landlords intending to remortgage or move to a new deal.

The increase comes as a large volume of fixed-rate borrowing reaches the end of its term.

Industry data show that £49.7 billion of fixed-rate BTL mortgages are due to mature in the 12 months to November.

That reflects the popularity of five-year deals taken out during the surge in activity seen in 2021.

Most refinancing in personal names

The survey of more than 800 landlords also found they are expecting to refinance an average of 2.2 properties each.

Nearly half, (46%), plan to refinance a single property, while 31% expect to refinance two.

At the upper end, 6% anticipate arranging new borrowing for five or more homes.

Most refinancing activity is expected to remain outside company structures.

Almost eight in 10 properties, (78%), will be refinanced in a personal name, compared with 19% held in limited companies.

The research also shows that more than six in 10 landlords using BTL borrowing have had a fixed-rate deal mature within the last two years.

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