Four in 10 landlords plan to refinance in 2026 – Paragon Bank
46% intend to refinance one home, while three in 10 (31%) plan to refinance two, and 6% look to secure new loans for five or more properties.
Four in 10 landlords plan to refinance buy-to-let (BTL) properties during 2026, according to research from Paragon Bank.
Over half (53%) of those with four or more BTL mortgages expect to remortgage or switch products with their existing lender, falling to 27% of those with between one and three properties.
In the same quarter of 2020, 27% of landlords planned to remortgage or switch products.
Industry data showed that £49.7bn of fixed-rate BTL mortgages were set to mature in the 12 months to November, mainly driven by 5-year fixed-rate deals taken out during a busy 2021 for the market.
Landlords plan to refinance an average of 2.2 properties each.
Nearly half (46%) intend to refinance one home, while three in 10 (31%) plan to refinance two, and 6% look to secure new loans for five or more properties.
Most refinancing is expected to be in a personal name, at 78%.
The majority of properties (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.
Louisa Sedgwick (pictured), managing director of mortgages at Paragon Bank, said: “The research highlights how 2026 will be another big year for maturing mortgages, with remortgaging and product switches driving buy-to-let business.
“This is driven by the buoyant market from 2021, when the Stamp Duty holiday led to the strongest market for buy-to-let house purchase on record. Much of that business was written on five-year fixed-rate mortgages.
“While many landlords plan on remortgaging just one property, we do see that plenty of others may have more.”
Sedgwick added: “This shows the benefit of working with landlords and reviewing their portfolios and future plans.
“Not only does it build new or strengthen existing relationships with clients who will no doubt appreciate the support, it also helps to secure new business.
“Our separate analysis of industry data highlighted how landlords are often withdrawing equity to expand their portfolios or invest in those they already own.”
She said: “With rates coming down and demand remaining robust, purchases look more attractive.
“Additionally, some landlords may draw down funds to enhance the properties across their portfolios to ensure they’re compliant with the forthcoming Renters’ Rights Act and Minimum Energy Efficiency Standards regulations.”
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