Four in 10 landlords with buy-to-let mortgages plan to refinance in the next year, says Paragon Bank.
Its survey of nearly 600 landlords found that a quarter (26%) have a mortgage on all of their rental properties, compared to 43% who own outright and 31% who have a mix of owned outright and mortgaged.
Of those with a mortgage, 38% intend to either remortgage or product transfer over the period, refinancing an average of 2.9 buy-to-let loans each.
Pegasus says the research highlights the opportunity for landlords with unencumbered properties to raise finance against them to fund upgrades or expansion, while those refinancing existing loans could consider releasing equity for improvements, subject to lending criteria and affordability.
Refinancing has been a significant feature of the buy-to-let market as five year fixed-rate mortgages taken out in the pandemic era property boom mature.
UK Finance data showed a record £18.2 billion was lent for buy-to-let house purchases in 2021, with a further £17.4 billion in 2022.
Further industry data shows that £62 billion of outstanding fixed-rate buy-to-let mortgages are due to mature in the year to the end of August 2027.
Louisa Sedgwick, Paragon Bank Managing Director of Mortgages, says: “Remortgaging accounted for three quarters of buy-to-let business during the first half of 2026 and I would expect refinancing to remain a significant feature of the market given the record levels of new business during 2021 and 2022, when landlords took advantage of the Stamp Duty holiday.
“For landlords with several properties coming up for refinancing, there can also be benefits to reviewing multiple loans together.“
