Three in five landlords had to deal with their fixed rate buy-to-let mortgage maturing in the past two years, analysis from mortgage software company Pegasus Insight has found.
Of this group, over a third (36%) faced challenges in the form of higher interest rates, fees, or problems with valuations.
One in four remortgaged to a different lender, with that proportion rising to 37% among landlords with 11 or more rental properties, indicating a greater willingness to shop around among experienced operators managing larger portfolios.
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 timeframe.
“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.”
Of those refinancing, over two-thirds stayed with their existing lender; one in three remortgaged and one in three took a product transfer.
For landlords planning to refinance, the most valued criteria for a new deal are competitive interest rates (84%), low upfront fees (63%), followed by the ability to repay early without penalty (26%).
Some 77% of properties were refinanced in a personal name, and 22% via a limited company, which is more advantageous from a tax perspective.
