The Intermediary – February 2026 - Flipbook - Page 59
BUY-TO-LET
Opinion
This will be a
defining year for
buy-to-let advisers
N
early two months
into 2026 and it
already feels like a
very significant year
for the buy-to-let
(BTL) market. A large
cohort of landlords are now coming
up for product maturity, in a much
more price-competitive mortgage
market. And that’s before we have
even mentioned the Renters’ Rights
Act, and its potential increase in
purchase business.
All of these factors point to a year
where BTL activity will grow and a
more focused and professionalised
landlord base will continue to
seek opportunities and secure
portfolio growth.
Refinance-led recovery
Industry data supports this view.
The Intermediary Mortgage Lenders
Association (IMLA) estimates BTL
gross lending reached £39bn in 2025
and forecasts this will rise to £44bn
this year. Crucially, the bulk of this
activity is expected to come from
remortgaging and product transfers
(PTs) rather than new purchases.
IMLA forecast remortgage volumes
of around £28bn in 2026, rising to
£29bn in 2027. Our own landlord
survey, carried out at the end of
December and start of January, fits
neatly within this picture. Many
landlords are reviewing their options,
assessing affordability and thinking
about how best to bolster property
portfolios in a changing market.
Pricing shifts
One of the most important dynamics
which will shape activity is the gap
between where pricing is now, and the
rates and products landlords are siing
on or coming to the end of. According
to Twenty7tec, at the time of writing
the average BTL 2-year fixed rate sits
at 5.19%, with the average 5-year fix
at 5.54%. Our survey shows many
landlords are still on deals priced
above 5%, and a meaningful number
on rates of 6% or more, secured two
or three years ago when pricing was at
its peak.
Today’s reality is different. There
are deals currently available at rates
well below those averages. In our
own Premier range at Landbay, we
have rates currently starting with
a two. This is therefore a healthier
market to refinance into. Monthly
payments could be lower. Cash flow
can improve. And for some landlords,
affordability improvements means
access to equity becomes more
realistic again.
Remortgage landscape
For advisers, the remortgage
conversation also presents a very
clear opportunity. Many landlords
are thinking about wider issues.
Ownership structure. Future tax
changes. Portfolio growth. And
of course, the cost of meeting new
responsibilities under the Renters’
Rights Act.
Much of the focus has been on
compliance and cost, but IMLA
highlighted a less discussed potential
outcome. The Act could increase
property churn; smaller landlords
may well sell up, with their properties
likely to be bought by portfolio
operators. That could support
purchase lending over the next two
years. But even here, remortgaging
and release of stored equity will oen
sit behind those purchases. Again,
advisers are central to that process.
PT pressures
Our survey also highlighted an
important behavioural trend. Around
ROB STANTON
is sales and distribution director
at Landbay
three-quarters of landlords told us
they would use the same adviser
again for their next buy-to-let
mortgage. That is hugely positive.
But of those who would not, the most
common reason was not necessarily
dissatisfaction, it was direct access
to PTs.
Of that group, 34.4% said they
would normally PT with the same
lender. In a market where pricing
has improved, this maers. Le to
their own devices, some landlords
may default to what they could deem,
an ‘easy option’. In doing so, they are
going to miss out on access to a wider
range of products and options that
beer suit their longer-term plans.
At Landbay, our product transfers
are adviser-only. Advisers remain
involved, ensuring speed does not
come at the expense of advice or
choice. In a year where remortgaging
and PTs will account for the majority
of activity, that distinction maers.
A year of opportunity
The message for 2026 is clear. This is
not a market in retreat. It is a market
adjusting to a new phase and likely to
move forward at some pace. Pricing
is more competitive. Volumes are
rising. Landlords are engaged and
planning ahead.
But advisers will need to work at
these relationships. If they do not,
others will fill the gap. By staying
close to landlord clients, reviewing
options early and explaining what
is now achievable, this looks like
a year with real opportunity to
deliver positive outcomes for both
advisory firms and across landlords
BTL portfolios. ●
February 2026 | The Intermediary
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