Four in 10 landlords plan to remortgage this year

Landlords with mortgages could face a busy year of refinancing as thousands of them plan to review their buy to let loans in the face of higher costs and regulatory change.

Pegasus Insight’s latest Landlord Trends research found that 39% of landlords plan to remortgage within the next 12 months.

Larger portfolio landlords are expected to drive much of that activity.

Among landlords with four or more mortgages, 56% intend to refinance during the next year, compared with 24% of those holding one to three mortgages.

Rent controls threat

The firm’s founder and managing director, Mark Long, said: “While much of the recent discussion around the private rented sector has focused on the potential negative impact of the Renters Rights’ Act and the threat of future rent controls, these findings highlight the continued scale of borrowing activity taking place across the landlord market.

“Landlords are not standing still – many are actively refinancing, restructuring borrowing and reviewing funding arrangements across multiple properties, creating continued demand for dedicated buy to let lending and expert advice.”

He added: “What also stands out is the stability underpinning the sector.

“Tenant demand remains resilient and tenancies are often long term in nature, helping to provide landlords with relatively predictable rental income over extended periods.”

BTL lending advice

Pegasus says that those expecting to refinance anticipate remortgaging an average of 2.7 loans each, pointing to continued demand for BTL lending and mortgage advice across the sector.

The research says the average mortgaged landlord now holds several buy to let loans, with borrowing arrangements becoming more complex across multiple homes.

Separate research from the firm found that tenants have been in rented accommodation for an average of 8.2 years, including more than five years in their current home.

Two thirds of tenants also say they intend to stay in their current rented home when their existing agreement ends, supporting consistent income streams for landlords.

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