Almost four in 10 landlords are planning to refinance in 2026, according to research from Paragon Bank.
The survey of 837 landlords, carried out by Pegasus Insight, found that 39% intend to refinance in the next year with this figure increasing with portfolio size.
Over half (53%) of landlords with four or more properties plan to remortgage or switch to a new product with their existing lender, falling to 27% of landlords with one to three properties.
This is a growing trend with research from the same quarter of 2020 finding only 27% of landlords in total were planning to refinance in the year ahead.
The research also revealed that landlords plan to refinance an average of 2.2 properties each. More than four in 10 (46%) will refinance just one home, three in 10 (31%) two homes and, at the other end of the scale, 6% will look to secure new loans for five or more properties.
The majority of properties, almost eight in 10 (78%), will be refinanced in a personal name, with two in 10 (19%) in a limited company.
The research also found that more than six in 10 landlords who financed their investments with BTL borrowing had a fixed rate deal mature during the last two years.
“The research highlights how 2026 will be another big year for maturing mortgages, with remortgaging and product switches driving BTL business,” said Louisa Sedgwick, managing director of mortgages at Paragon Bank (pictured above).
“This is driven by the buoyant market from 2021, when the Stamp Duty holiday led to the strongest market for BTL house purchase on record.
“Much of that business was written on five-year fixed-rate mortgages.”
