Remortgaging landlords drive BTL activity

Remortgaging landlords are generating the bulk of lenders’ business, according to a survey’s findings, with 57% of those leveraged arranging a refinancing deal in the last 12 months.

The figure is up 10 percentage points on the previous quarter and is equal to the high first recorded at the end of 2025, according to the latest Landlord Trends research from Pegasus Insight.

Meanwhile, two-thirds of landlords arranged their most recent buy-to-let (BTL) loan through a mortgage intermediary, rising to three-quarters of portfolio landlords.

When choosing a mortgage, landlords place the greatest importance on a competitive interest rate, followed by low upfront fees and charges.

 

Fixed rate cycle

Remortgages and product transfers together accounted for around eight in 10 recent transactions, with mortgages for new purchases making up just 8%.

Landlords rolling off fixed rate deals are said to be fuelling the activity, as 62% of mortgaged landlords have come to the end of their fixed rate deal within the last two years. When their deal expired, 60% remortgaged with their existing lender, while 29% remortgaged to a different lender, meaning nearly a third of maturing business changed hands.

Some 64% started to arrange their replacement deal 3-6 months before their fixed rate ended. Higher interest rates and difficulty finding a competitive deal were the most commonly cited challenges at renewal.

Looking ahead, 40% of borrowers plan to remortgage or take a product transfer in the next 12 months, covering around two-and-a-half loans each on average.

Among portfolio landlords with four or more BTL mortgages, around half anticipate refinancing in the year ahead, across an average of 3.7 loans.

Bethan Cooke, director at Pegasus Insight, said: “Buy to let is currently first and foremost a refinancing market, with landlords remortgaging and arranging product transfers at record levels.

“For intermediaries, the picture is an encouraging one. Portfolio landlords in particular are managing multiple loans on different timelines and clearly value advice, and with deals maturing month after month, brokers who stay close to those clients as their fixed rates approach expiry are well placed to help them find the right deal.”