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Landlords are ‘planning for the future’ by remortgaging properties

There was a notable increase in buy-to-let remortgage business in the second quarter of the year, according to Paragon Bank. 

The research shows that mortgage intermediaries taking part in the research indicated that remortgages accounted for 60% of buy-to-let cases in the second quarter, up from 48% in the previous quarter, as new lending for property purchase fell as a result of the lockdown.

As is often the case, the ability to secure a better interest rate was the most common reason for remortgaging; the motivator for 54% of landlords. 


But 30% of landlords said that they remortgaged to raise capital. This made it the second most cited driver, accounting for double the amount of business than all the remaining reasons combined.

The research also reveals the growing prominence of portfolio landlords in the PRS.

Landlords who own four or more properties accounted for the highest proportion of BTL mortgage business, rising from 25% in quarter one to 28% over the last three months.

Moray Hulme, Paragon director for mortgage sales, commented: “These findings are encouraging for the sector because they show that landlords have not only been resilient during the recent challenges but have been planning for the future.

“The data also supports the idea that there is a shift towards a professionalisation of the private rented sector. This is positive because a higher number of professional landlords has been shown to correlate with higher standards in the sector.”

Intermediaries provided the insight as part of Paragon’s Financial Adviser Confidence Tracker [FACT] Index. The specialist lender produces the index on a quarterly basis to better understand the market and gain a broker perspective.”

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  • icon

    Increasing debt now, is that a good idea ?

  • icon

    I would love this to be the case but aren’t we facing a potential crash in property prices? Mass unemployment is on the cards.
    S24 and all the new regs coming in.

  • icon

    Personally I'm only remortgaging if a Fixed deal I'm on is coming to an end and another provider can give me a better deal than my current one - and I'd assume that's what most landlords would do.

    Remortgaging is big BTL business as no sensible landlord will stay with the same provider for years if they can get a better deal elsewhere, it's not necessarily about increasing debt, more doing the best management of what you currently owe.

  • Matthew Payne

    It might also be landlords who have lower value mortages taking an opportunity to increase their portfolio by leveraging slightly more from the exisiting one with relatively low risk.


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