BTL remortgage activity matches record high
Buy-to-let remortgage activity has returned to its record high, with 57% of leveraged landlords arranging a new loan, remortgage or product transfer in the 12 months to June, according to the latest Landlord Trends research from Pegasus Insight.
The figure is up 10 percentage points on the previous quarter, equalling the high first recorded at the end of 2025 and well above the 39% seen two years ago. Remortgages and product transfers together accounted for around eight in ten recent transactions, with mortgages for new purchases making up just 8%, confirming that it is refinancing, rather than portfolio expansion, that is generating the bulk of new business for lenders.
Much of this activity is driven by the fixed-rate cycle. 62% of mortgaged landlords have had a fixed-rate deal come to an end within the last two years. When their deal expired, 60% remortgaged with their existing lender, while 29% remortgaged to a different lender, meaning nearly a third of maturing business changed hands.
Landlords tend to plan ahead, with 64% beginning to arrange their replacement deal three to six months before their fixed rate ended. Higher interest rates and difficulty finding a competitive deal the most commonly cited challenges at renewal.
Looking ahead, 40% of borrowers plan to remortgage or take a product transfer in the next 12 months, covering around 2.5 loans each on average. Among portfolio landlords with four or more buy-to-let mortgages, around half anticipate refinancing in the year ahead, across an average of 3.7 loans. Fixed rates remain the clear preference, with two-year and five-year terms equally popular, while 28% are yet to decide on their next product type.
Two-thirds of landlords arranged their most recent buy-to-let loan through a mortgage intermediary, rising to three-quarters of portfolio landlords. When choosing a mortgage, landlords place the greatest importance on a competitive interest rate, followed by low upfront fees and charges.
Bethan Cooke, director at Pegasus Insight, commented: “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.”