According to a survey carried out by Pegasus Insight, more than two-thirds of landlords who refinanced stayed with their existing lender, comprising a third who remortgaged and the remainder who chose a product transfer.
Some 26% of landlord borrowers remortgaged to a different lender, with this rising to 37% among those with 11 or more rental properties. Pegasus Insight said this could be a sign that more experienced landlords managing larger portfolios were more likely to shop around.
Nearly two-thirds – 64% – of landlords said they did not face any challenges when their mortgage expired, while for the 36% who did struggle, this was down to higher interest rates, higher fees and issues with valuations.
Starting the BTL refinance process early
The majority – 61% – of landlord borrowers secured a new fixed rate deal 3-6 months before their current one ended. However, Pegasus Insight’s survey found that those who stayed with the same lender were more likely to refinance later.
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Two-fifths of leveraged landlords said they would remortgage or take a product transfer in the next 12 months, with this rising to 53% among portfolio landlords with four or more properties.
On average, landlords expect to refinance 2.4 loans each, rising to around three among those with larger portfolios.
Interest rates most important to landlords
For landlords planning to refinance, competitive interest rates were the most valued feature, as cited by 84% of respondents.
Some 63% looked for low upfront fees, while 26% wanted the ability to repay the loan early without a penalty.
Most landlords said they borrowed in their personal name, accounting for 77% of respondents, while 22% borrowed through a limited company.
Bethan Cooke, director at Pegasus Insight, said: “The expiry of fixed rates has created a refinancing flashpoint, particularly for portfolio landlords faced with multiple mortgages maturing within a short time frame. 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. 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.”
