Landlords Remortgaging at Record Levels Amid Fixed-Rate Expiries

Landlords Remortgaging at Record Levels Amid Fixed-Rate Expiries

New research shows 57% of leveraged landlords arranged remortgages or product transfers in the year to June, reaching a record high. This refinancing trend is driven by fixed-rate mortgage expiries and rising interest rates.

Buy-to-let landlords in the UK are increasingly engaging in remortgage activity, with the latest data from Pegasus Insight’s Landlord Trends research revealing that 57% of those with leveraged properties arranged a new loan, remortgage, or product transfer in the 12 months leading up to June 2026. This level matches the record high first seen at the end of 2025 and marks a significant increase from 39% two years earlier.

The surge in remortgaging activity is primarily due to the fixed-rate mortgage cycle. According to the research, 62% of mortgaged landlords have experienced the end of a fixed-rate deal within the past two years. Faced with higher interest rates and challenges in finding competitive deals, landlords are refinancing existing loans rather than expanding their portfolios. Around 80% of recent mortgage transactions were remortgages or product transfers, with only 8% related to new property purchases.

Details of Remortgage Trends and Landlord Behaviour

The research highlights that when fixed-rate deals expire, 60% of landlords choose to remortgage with their existing lender, while 29% switch to a different lender. This means nearly a third of maturing loans change hands. Landlords tend to plan ahead, with 64% starting the process of arranging their replacement mortgage three to six months before their current deal ends.

Looking forward, 40% of landlords with mortgages intend to remortgage or transfer their product within the next 12 months, averaging 2.5 loans each. Portfolio landlords with four or more buy-to-let mortgages are even more active, with around half expecting to refinance an average of 3.7 loans in the coming year.

Fixed-rate deals remain the preferred choice, with two-year and five-year terms equally popular among landlords. However, 28% of landlords are still undecided on the type of product they will select next. Mortgage intermediaries play a significant role in these transactions, with two-thirds of landlords arranging their most recent buy-to-let loan through a broker, rising to 75% among portfolio landlords.

When selecting a mortgage, landlords prioritise a competitive interest rate, followed by low upfront fees and charges. These factors are critical in a higher interest rate environment where refinancing costs can significantly impact profitability.

Context and Implications for UK Landlords

This rise in remortgaging activity reflects broader market conditions affecting the private rented sector. The end of fixed-rate deals coinciding with a period of elevated interest rates places pressure on landlords’ cash flow and investment returns. As refinancing becomes a necessity rather than a choice, landlords must carefully assess their options to maintain financial viability.

The predominance of refinancing over portfolio expansion suggests landlords are focusing on managing existing assets rather than acquiring new properties. This trend may influence rental supply and investment activity in the sector, potentially affecting rental market dynamics.

Mortgage brokers’ involvement underscores the complexity of the current lending environment, where finding competitive deals requires specialist knowledge. Landlords without intermediary support may face difficulties securing favourable terms, especially as lenders tighten criteria amid economic uncertainty.

Practical Considerations for Landlords and Letting Agents

For landlords, the key practical takeaway is the importance of proactive mortgage management. Starting the remortgage process well before fixed-rate expiry can provide more options and reduce the risk of falling into higher standard variable rates. Given the high proportion of landlords switching lenders, shopping around is advisable to secure the best available terms.

Letting agents advising landlords should be aware of the refinancing pressures their clients face and may need to incorporate mortgage planning into their service offering. Understanding the timing of fixed-rate expiries and the impact of interest rate changes can help agents provide informed guidance on rent setting and portfolio strategy.

Landlords should also consider the implications of remortgage costs and potential changes in loan-to-value ratios on their overall investment returns. Refinancing decisions may affect cash flow, tax planning, and long-term portfolio sustainability.

Areas of Uncertainty and What to Watch

While the current data shows a clear trend towards remortgaging, the future interest rate environment remains uncertain. Any shifts in Bank of England policy or lender risk appetite could alter mortgage availability and pricing. Landlords should monitor economic indicators and lender announcements closely.

The impact of regulatory changes, such as ongoing rental reform or adjustments to landlord licensing and safety obligations, could also influence lending conditions and landlord behaviour. Staying informed about legislative developments is essential for effective portfolio management.

Additionally, the proportion of landlords undecided on their next mortgage product type signals some uncertainty in market preferences. The balance between short-term flexibility and longer-term security in mortgage terms will be a critical factor for many landlords in the coming months.

What Landlords Should Consider Now

• Review the expiry dates of existing fixed-rate mortgages and begin early planning for remortgaging to avoid defaulting to higher rates.
• Consult with mortgage intermediaries to explore competitive deals and understand the full cost implications of refinancing or product transfers.
• Assess the impact of potential interest rate increases on rental income and overall portfolio cash flow to ensure ongoing viability.
• Keep abreast of regulatory changes affecting the private rented sector that may influence lending criteria or landlord obligations.
• Maintain detailed records of mortgage agreements, communications with lenders, and financial planning to support compliance and strategic decision-making.

Keeping your rental properties compliant amid refinancing

Membership of The Landlord Association (TLA) provides landlords and letting agents with access to compliance resources and practical information that can assist during periods of refinancing activity. TLA’s developing ORBIT platform, currently in BETA testing, offers tools to organise property records, manage mortgage documentation, and keep track of key dates such as fixed-rate expiries. This can help landlords prepare for remortgage deadlines and maintain evidence of compliance with tenancy and safety obligations during transitions. Exploring TLA membership also grants access to expert updates on regulatory changes that may impact mortgage conditions and landlord responsibilities, supporting informed decision-making in a shifting financial landscape.

Landlords should consider reviewing their mortgage arrangements alongside tenancy compliance to ensure all aspects of property management remain aligned with current requirements.

Sources: Landlord Today