The end of fixed term deals and shifting portfolio strategies is driving a major wave of refinancing among buy-to-let (BTL) landlords, research from Pegasus Insight has highlighted.

Landlord research carried out by the firm indicated that six in 10 landlords with BTL borrowing have had a fixed rate mature in the last two years.

Of those refinancing, over two-thirds stayed with their existing lender, while one in three remortgaged and one in three took a product transfer. The Pegasus study also found that one in four landlords remortgaged to a different lender, with that proportion rising to 37% among landlords with 11 or more rental properties.

Pegasus said this could indicate a “greater willingness to shop around” among experienced operators managing larger portfolios.

The majority of landlords (64%) said they did not face any challenges when their BTL mortgage came to the end of its fixed term, while of the 36% who did face a challenge, higher interest rates, higher fees and problems with valuations were the major obstacles.

Most began the process of securing a new deal three to six months before the end of their fixed rate (61%), although those staying with the same lender tended to leave it closer to the deal’s end.

Director at Pegasus Insight, Bethan Cooke, commented: “The expiry of fixed rates has created a refinancing flashpoint, particularly for portfolio landlords faced with multiple mortgages maturing within a short timeframe.

“These landlords are pragmatic and commercially focused; the data suggests that they are more likely to seek out competitive terms from new lenders, weigh up incorporation strategies and look for support managing their refinancing pipeline efficiently.

“Refinancing is not just a transactional moment, it’s a strategic inflection point for many landlords. With margins under pressure and confidence still fragile, landlords are thinking carefully about their costs and looking for product flexibility.”

Looking ahead, 40% of leveraged landlords say they will remortgage or take a product transfer in the next 12 months, a figure that increased to 53% among portfolio landlords with four or more BTL mortgages.

On average, landlords expect to refinance 2.4 loans each, which rose to around three loans among larger portfolio holders – those with an average of 9.8 mortgages.

“For portfolio landlords in particular, this is about streamlining complexity and making their finance work harder,” added Cooke. “That’s where brokers can add real value, not just in sourcing deals, but in helping landlords structure their borrowing for the long-term.”

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