Thirty-nine per cent of landlords plan to refinance buy-to-let (BTL) properties throughout 2026, Paragon Bank has revealed.

The bank said that this figure "unsurprisingly" increases in line with portfolio size.

Over half (53%) of those with four or more BTL mortgages anticipate either remortgaging or switching to a new product with their existing lender, falling to 27% of those with between one and three properties.

Paragon said the data shows that refinancing has steadily increased over time, with the same quarter in 2020 seeing an average of 27% of landlords planning to either remortgage with another lender or secure a product switch with their existing.

The bank’s survey of over 800 landlords also found that landlords plan to refinance an average of 2.2 properties each, with 46% planning to refinance one home.

Over three in 10 (31%) will refinance two homes and 6% will look to secure new loans for five or more properties. The majority (78%) will be refinanced in a personal name, with 19% in a limited company.

Industry data has shown that £49.7bn worth of fixed-rate BTL mortgages are set to mature in the 12 months to November, predominantly fuelled by the high number of five-year fixes taken out during 2021, which was seen as a bumper year for the BTL market.

Managing director of mortgages at Paragon Bank, Louisa Sedgwick, said the latest research shows how 2026 will be "another big year for maturing mortgages", with remortgaging and product switches driving BTL business.

She added: "While many landlords plan on remortgaging just one property, we do see that plenty of others may have more. 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. 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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