Buy-to-let refinancing activity has returned to a record high as landlords contend with the expiry of fixed-rate mortgages taken out before borrowing costs increased.
Research from Pegasus Insight shows 57% of leveraged landlords arranged a new loan, remortgage or product transfer during the 12 months to June.
The figure is 10 percentage points higher than in the previous quarter, matches the record first reached at the end of 2025 and compares with 39% two years ago.
Remortgages and product transfers accounted for approximately eight in ten recent transactions, while mortgages funding property purchases represented just 8%.
FIXED-RATE EXPIRIES DRIVE ACTIVITY
Almost two-thirds of mortgaged landlords have seen a fixed-rate deal expire during the past two years.
Of those refinancing at maturity, 60% remained with their existing lender while 29% moved elsewhere, putting almost a third of renewing business into play.
Landlords typically begin preparing early, with 64% starting to arrange a replacement mortgage between three and six months before their existing rate ends.
Higher interest rates and difficulty securing competitive deals were the most frequently reported challenges.
PORTFOLIO LANDLORDS PLAN FURTHER REFINANCING
Four in ten borrowers expect to remortgage or complete a product transfer over the coming year, involving an average of 2.5 loans each.
The proportion rises to around half among portfolio landlords with at least four buy-to-let mortgages. These borrowers expect to refinance an average of 3.7 loans.
Two and five-year fixed rates are equally popular, although 28% of respondents remain undecided about their next product.
Two-thirds of landlords arranged their latest buy-to-let mortgage through an intermediary, rising to three-quarters among portfolio operators.
MATURITY CREATES WINDOW FOR COMPETITION
Bethan Cooke (main picture, inset), Director at Pegasus Insight, says: “Buy-to-let is currently first and foremost a refinancing market, with landlords remortgaging and arranging product transfers at record levels.
“The point at which a fixed rate matures has become a pivotal moment in the lending relationship. Most landlords stay with their existing lender when their deal ends, but a significant minority look elsewhere, and because they begin researching their options months before expiry, there is a genuine window for lenders to engage early with competitive rates and low fees, the two things landlords tell us they care about the most.
“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.”
