Four in 10 mortgaged landlords plan to refinance within a year

Four in 10 landlords with BTL mortgages plan to refinance in the next year, research carried out on behalf of Paragon Bank has found.

The survey of nearly 600 landlords by Pegaus Insight found that a quarter (26%) have a mortgage on all of their rental properties, compared to 43% who own outright and 31% who have a mix of owned outright and mortgaged.

Of those with a mortgage, 38% intend to either remortgage or product transfer over the period, refinancing an average of 2.9 BTL loans each.

Paragon said the research highlighted an opportunity for landlords with unencumbered properties to raise finance against them to fund upgrades or expansion, while those refinancing existing loans could consider releasing equity for improvements across their portfolios, subject to lending criteria and affordability.

Refinancing has been a significant feature of the BTL market as five year fixed-rate mortgages taken out in the pandemic era property boom mature.

Louisa Sedgwick, Paragon Bank managing director of mortgages (pictured above), said: “Remortgaging accounted for three quarters of BTL business during the first half of 2026 and I would expect refinancing to remain a significant feature of the market given the record levels of new business during 2021 and 2022, when landlords took advantage of the Stamp Duty holiday.

“For brokers, that creates an opportunity to work with landlords ahead of upcoming maturities, looking across their portfolios at refinancing requirements as well as wider borrowing needs, such as releasing equity for property improvements or future investment.

“Upcoming maturities also give brokers an opportunity to look beyond the immediate refinance and consider a landlord’s wider portfolio funding requirements. That could include raising capital against unencumbered properties or releasing equity from existing investments to finance improvements or support further investment, subject to lending criteria and affordability.”