"Our separate analysis of industry data highlighted how landlords are often withdrawing equity to expand their portfolios or invest in those they already own. With rates coming down and demand remaining robust, purchases look more attractive"
- Louisa Sedgwick - Paragon Bank
Almost four in 10 landlords intend to refinance buy-to-let properties in the next 12 months, according to research by Paragon Bank.
The study, covering Q4 2025, found that 39% of landlords plan to remortgage or switch to a new product in 2026. The proportion rises with portfolio size, with 53% of landlords holding four or more buy-to-let mortgages expecting to refinance, compared with 27% of those with one to three properties.
Refinancing activity has steadily increased over time. In the same quarter of 2020, 27% of landlords were planning either to remortgage with another lender or to switch products with their current lender.
Industry data indicates that £49.7 billion of fixed-rate buy-to-let mortgages are set to mature in the 12 months to November, largely due to the surge in five-year fixed-rate deals taken out during 2021, a record year for buy-to-let purchases.
The survey of more than 800 landlords, conducted by Pegasus Insight for Paragon Bank, found that landlords expect to refinance an average of 2.2 properties each. Nearly half (46%) plan to remortgage one property, 31% two homes, and 6% intend to refinance five or more properties.
Most properties, around 78%, will be refinanced in a personal name, while 19% will be held through a limited company. The research also showed that over 60% of landlords who used buy-to-let borrowing have had a fixed-rate deal mature in the past two years.
Louisa Sedgwick, managing director of mortgages at Paragon Bank (pictured), 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."
“While many landlords plan on remortgaging just one property, we do see that plenty of others may have more. This shows the benefit of working with landlords and reviewing their portfolios and future plans. Not only does it build new or strengthen existing relationships with clients who will no doubt appreciate the support, it also helps to secure new business.”
She added: “Our separate analysis of industry data highlighted how landlords are often withdrawing equity to expand their portfolios or invest in those they already own. With rates coming down and demand remaining robust, purchases look more attractive."
"Additionally, some landlords may draw down funds to enhance the properties across their portfolios to ensure they’re compliant with the forthcoming Renters’ Rights Act and Minimum Energy Efficiency Standards regulations.”
