Buy-to-let refinancing has reached a record high, with 57% of leveraged landlords arranging a new loan, remortgage, or product transfer in the 12 months leading up to June. This represents a 10 percentage point increase from the previous quarter and equals the peak recorded at the end of 2025.
Remortgages and product transfers accounted for approximately eight in ten recent transactions, while mortgages for new purchases made up just 8%. Pegasus Insight stated that refinancing is driving most new business for lenders, rather than landlords expanding their portfolios.
Bethan Cooke, a director at Pegasus Insight, noted that the maturity of a fixed-rate deal has become a crucial point in the lending relationship. Most landlords reportedly remain with their current lender when their deal ends, but a notable minority seek alternatives. Landlords often begin researching options months before expiry, creating an opportunity for lenders to offer competitive rates and low fees.
Around 62% of mortgaged landlords have had a fixed-rate deal expire within the last two years. Of these, 60% refinanced with their existing lender, while 29% moved to a different lender. Nearly two-thirds (64%) began arranging their replacement mortgage between three and six months before their fixed term concluded. Higher interest rates and difficulty in finding competitive deals were the most frequently reported challenges at renewal.
Looking ahead, 40% of borrowers plan to remortgage or take a product transfer over the next 12 months, covering an average of about 2.5 loans each. Approximately half of portfolio landlords with four or more buy-to-let mortgages expect to refinance, involving an average of 3.7 loans.