Purchase mortgages accounted for 24.2% of all BTL applications submitted through the broker in Q2 2026, down from 29.8% in the same period a year earlier.
The 18.9% annual decline was more than double the relative fall recorded in the first quarter of this year.
However, the average loan requested for a property purchase increased by 6.6% year-on-year, rising from £194,892 to £207,673. This was also 9.5% higher than the average loan requested in Q1 2026.
Northern regions continue to attract investment
Regional trends showed continued investor interest in Northern England.
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Yorkshire and the Humber accounted for 12.6% of purchase applications in Q2, up from 3.4% a year earlier. The North East also increased its share from 1.7% to 8.4%.
The North West remained the most popular region for purchase applications, representing 14.7% of the total – broadly unchanged from 15.1% a year ago.
It was followed by the South East at 13.7%, Yorkshire and the Humber at 12.6%, and the West Midlands at 11.6%.
By contrast, the East of England’s share of purchase applications fell sharply from 16% to 2.1%, while the East Midlands declined from 12.6% to 5.3%. The South West also saw its share drop from 15.1% to 7.4%.
Remortgage activity grows
Across the first half of 2026, purchase mortgages accounted for 26.1% of Commercial Trust’s BTL applications, down from 29.2% in the first half of 2025, indicating that the decline extends beyond a single quarter.
Meanwhile, remortgaging made up a larger proportion of applications, rising from 44.1% in Q2 2025 to 56% in Q2 2026.
Jorden Abbs, chief executive of Commercial Trust, said: “Landlords have not stopped buying, but the data shows they are becoming more selective. Purchases now account for a smaller slice of applications, yet the average loan requested by buyers is higher.
“The continued interest in Northern markets may reflect the value and rental returns landlords believe they can find there. Even so, no location should be treated as a shortcut. Investors still need to weigh up local demand, property costs and the finance available.
“A sustained decline in purchase activity would matter for rental supply. As the sector adapts to major reform, policy must protect tenants without making it harder for responsible landlords to add the homes renters need.
“The rise in remortgaging also shows that landlords are not standing still. Many are reviewing their existing finance, managing costs and putting themselves in a stronger position before making their next move.”
