"With margins under pressure and confidence still fragile, landlords are thinking carefully about their costs and looking for product flexibility. For portfolio landlords in particular, this is about streamlining complexity and making their finance work harder"
- Bethan Cooke - Pegasus Insight
Buy-to-let landlords are accelerating refinancing activity in response to fixed-rate mortgage expiries and changing portfolio strategies, according to new research from Pegasus Insight.
The survey found that 60% of landlords with buy-to-let borrowing have had a fixed-rate mortgage mature within the past two years. In response, more than a quarter (26%) opted to remortgage with a different lender. Among landlords with 11 or more properties, this figure rose to 37%, suggesting that larger portfolio holders are more inclined to seek out competitive terms beyond their current providers.
Overall, of those refinancing, around one-third remortgaged, while another third took a product transfer. The remainder stayed with their existing lender. Larger landlords, particularly those with significant borrowing across multiple properties, showed a greater tendency to explore alternative lending options.
Despite rising costs in the lending market, 64% of landlords reported no significant challenges when reaching the end of their fixed term. Among the 36% who did face obstacles, the most commonly cited issues were higher interest rates, increased fees, and complications related to property valuations.
Landlords generally began the refinancing process well in advance, with 61% starting between three and six months before the end of their current deal. However, those staying with the same lender were more likely to leave it until closer to the maturity date.
Looking ahead, 40% of landlords with buy-to-let mortgages plan to refinance within the next 12 months. Among portfolio landlords with four or more mortgages, this figure increases to 53%. On average, each landlord expects to refinance 2.4 loans over the coming year, with those managing larger portfolios forecasting closer to three refinanced loans, based on an average of 9.8 mortgages.
When selecting a new deal, landlords placed the most value on competitive interest rates, cited by 84% of respondents. Low upfront fees were important to 63%, while 26% prioritised the option to repay early without penalty.
The research also indicated that 77% of properties due to be refinanced will remain in personal names, with 22% held in limited companies. This distribution reflects broader trends in ownership structure, with incorporation remaining an option for some landlords, particularly those focused on long-term financial planning.
“The expiry of fixed rates has created a refinancing flashpoint, particularly for portfolio landlords faced with multiple mortgages maturing within a short timeframe,” said Bethan Cooke, director at Pegasus Insight. “These landlords are pragmatic and commercially focused; the data suggests that they are more likely to seek out competitive terms from new lenders, weigh up incorporation strategies and look for support managing their refinancing pipeline efficiently.”
“Refinancing is not just a transactional moment, it’s a strategic inflection point for many landlords,” Cooke continued. “With margins under pressure and confidence still fragile, landlords are thinking carefully about their costs and looking for product flexibility. For portfolio landlords in particular, this is about streamlining complexity and making their finance work harder. That’s where brokers can add real value, not just in sourcing deals, but in helping landlords structure their borrowing for the long term.”
