A significant wave of refinancing is sweeping across the UK’s buy-to-let sector as landlords respond to the expiry of fixed-rate mortgage deals and reconsider the structure of their property portfolios, new research from Pegasus Insight reveals.
The study, carried out by the mortgage market specialist, shows that more than two-thirds of landlords opting to refinance stayed with their existing lender. Of those, one in three took a product transfer while another third chose to remortgage.
A quarter moved to a different lender entirely — a figure that rises sharply to 37% among landlords with 11 or more properties, indicating a growing appetite among experienced operators to shop around for more competitive terms.
Bethan Cooke, director at Pegasus Insight, said the data points to a strategic inflection point for landlords navigating tighter margins and an increasingly complex refinancing landscape.
“The expiry of fixed rates has created a refinancing flashpoint, particularly for portfolio landlords faced with multiple mortgages maturing within a short timeframe,” she said. “These landlords are pragmatic and commercially focused… looking for support managing their refinancing pipeline efficiently.”
CHALLENGES
While the process appears smooth for many, 36% of landlords encountered challenges when their fixed-term mortgage ended. The most common difficulties were higher interest rates, increased fees and valuation problems. Nevertheless, 64% reported no significant issues.
Timing has become a key factor in managing refinancing risk. Most landlords (61%) began seeking a new deal between three and six months before the end of their fixed-rate period. However, those opting to remain with their current lender were more likely to delay the process until closer to the term’s expiry.
Looking ahead, 40% of leveraged landlords expect to refinance within the next 12 months. This rises to 53% among portfolio landlords with four or more buy-to-let mortgages. On average, landlords anticipate refinancing 2.4 loans each — a figure that climbs to around three loans among larger portfolio holders, who typically hold nearly 10 mortgages.
When choosing a new deal, landlords cite competitive interest rates (84%) and low upfront fees (63%) as their top priorities. Flexibility also features prominently, with 26% valuing the ability to make early repayments without penalty.
STRUCTURES
The research also highlights the prevailing ownership structures in the sector. The majority of refinanced properties (77%) are held in personal names, with 22% under limited company ownership. This reflects a measured, though persistent, interest in incorporation among more sophisticated landlords.
Cooke said that as economic pressures mount and confidence remains tentative, refinancing is increasingly seen as a moment for landlords to futureproof their finances.
“Refinancing is not just a transactional moment, it’s a strategic inflection point for many landlords,” she said. “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.”
She added that brokers have a vital role to play — not only in sourcing competitive products but also in helping landlords structure their borrowing in ways that reflect longer-term goals.
