Buy to Let remortgaging set to surge in 2027

Buy to Let remortgaging set to surge in 2027

New research from Paragon Bank reveals that 38% of landlords with buy-to-let mortgages plan to refinance in the next year, reflecting a significant remortgaging wave as fixed-rate deals mature.

Paragon Bank’s recent survey of nearly 600 landlords shows that a sizeable portion of buy-to-let landlords are preparing to remortgage or transfer their mortgage products in 2027. The data indicates that 26% of landlords have mortgages on all their rental properties, while 43% own their properties outright and 31% have a combination of mortgaged and owned outright properties. Among those with mortgages, 38% intend to refinance or switch products within the next year, averaging 2.9 buy-to-let loans each.

This trend is driven by the maturation of fixed-rate mortgages taken out during the pandemic property boom, with a large volume of these deals coming to an end in 2027. Industry figures show that £62 billion of outstanding fixed-rate buy-to-let mortgages are due to mature by August 2027, creating a substantial refinancing market.

Details of the remortgaging forecast

Paragon Bank’s Managing Director of Mortgages, Louisa Sedgwick, highlighted that remortgaging accounted for three quarters of buy-to-let mortgage business in the first half of 2026. She expects refinancing to remain a dominant feature of the market throughout 2027 due to the record levels of new buy-to-let lending in 2021 and 2022. During this period, many landlords took advantage of the Stamp Duty holiday, boosting property purchases and mortgage activity.

The research also points to opportunities for landlords with unencumbered properties to raise finance against those assets to fund property upgrades or portfolio expansion. Meanwhile, landlords refinancing existing loans might consider releasing equity for improvements, subject to lending criteria and affordability assessments.

UK Finance data supports these findings, showing record buy-to-let lending of £18.2 billion in 2021 and £17.4 billion in 2022, reinforcing the scale of mortgages coming up for renewal.

Context and implications for landlords

The surge in remortgaging activity is a natural consequence of the pandemic-era borrowing boom, where many landlords secured five-year fixed-rate mortgages. With these deals expiring, landlords face decisions about whether to remortgage, switch to different products, or potentially release equity.

For landlords managing multiple properties, coordinating remortgaging across several loans could bring benefits, such as negotiating better rates or consolidating borrowing. However, this requires careful financial planning and an understanding of current market conditions and lending criteria.

The opportunity to raise finance against unencumbered properties may be particularly relevant for landlords seeking to improve energy efficiency or comply with evolving property standards, as regulatory requirements continue to tighten. Equity release could fund necessary upgrades to meet minimum energy efficiency standards or other compliance obligations.

Practical considerations for landlords and agents

Landlords should review their mortgage portfolios well ahead of fixed-rate expiries to avoid rushed decisions. Early engagement with mortgage brokers or lenders can help identify suitable products and assess affordability, especially as interest rates and lending criteria may have shifted since the original mortgage was taken out.

Letting agents advising landlords should be aware of the refinancing wave and its potential impact on rental property management. Remortgaging may affect cash flow, rent setting, and investment strategies. Agents can support landlords by providing market insights and facilitating communication with lenders or mortgage advisers.

Landlords with unencumbered properties might explore options to leverage equity, but should consider the implications carefully, including the impact on overall debt levels and rental income coverage. Any decision to borrow more should factor in regulatory changes, such as the Renters’ Rights Act and energy efficiency requirements, which may influence the cost and viability of investment.

Uncertainties and what to watch

While the forecast points to a remortgaging boom, the exact scale and timing depend on broader economic factors, including interest rate movements, inflation, and government policy. Changes to lending rules or tax regulations could also influence landlord behaviour.

Landlords should monitor developments in mortgage market conditions and regulatory updates that affect borrowing and property standards. The potential for further reforms to landlord obligations or tenant protections may impact the attractiveness and cost of buy-to-let investment.

Given the complexity of refinancing decisions, landlords are advised to seek up-to-date professional advice and review official guidance to ensure compliance and financial prudence.

What landlords should do now

• Audit mortgage expiry dates across your portfolio to identify upcoming remortgaging deadlines.
• Engage early with mortgage brokers or lenders to explore refinancing options and product transfers.
• Consider the potential to release equity for property improvements, especially to meet compliance requirements.
• Stay informed about changes to lending criteria and government regulations affecting buy-to-let landlords.
• Keep detailed records of mortgage agreements, communications with lenders, and compliance activity.

Supporting landlords through remortgaging challenges

The Landlord Association (TLA) offers membership resources to help landlords and letting agents manage the complexities of remortgaging and property compliance. Through TLA’s developing ORBIT platform, currently available in BETA testing, members can organise property portfolios, track mortgage details, and record key financial and compliance actions in one place. ORBIT aims to assist landlords in maintaining up-to-date documentation and preparing for regulatory obligations such as the Renters’ Rights Act and energy efficiency standards.

Membership also provides access to practical compliance resources and expert guidance on mortgage and finance matters relevant to the private rented sector. While ORBIT is still in BETA, it represents a promising tool for landlords seeking to streamline property management and stay informed about evolving requirements.

Explore TLA membership and learn more about ORBIT BETA access to support your portfolio management and compliance efforts during this period of significant remortgaging activity.

Looking ahead, landlords will need to balance refinancing decisions with ongoing regulatory demands and market conditions. Proactive planning and informed advice will be essential to navigate the challenges and opportunities of the 2027 remortgaging wave.

Sources: Landlord Today