The Intermediary –- June 2026 - Flipbook - Page 37
BUY-TO-LET
Opinion
Why the next six
months matter
I
t is hard to believe we are
already touching the halfway
point of the year, particularly
given how much change the
buy-to-let (BTL) market has
absorbed. The second half is
shaping up to be defined by one core
activity above all others: refinance.
For advisers, this is not simply a
continuation of recent trends, it is
the main driver of business for the
foreseeable future. Those who are
well prepared now will be best-placed
to support landlord borrower clients
through what is likely to be a busy
and, potentially, complex period.
Wave of refinance
There is clear evidence that landlord
appetite for refinancing remains
strong by both necessity and perhaps
design, with Pegasus Insight research
recently finding that nearly four in 10
landlords expect to refinance within
the next 12 months.
These are not isolated, one-off
transactions either. Those planning
to refinance anticipate doing so
across multiple properties, with an
average of 2.7 loans per landlord.
Advisers are increasingly dealing with
portfolio-level decisions rather than
single cases.
At the same time, while some
landlords are still exploring
acquisitions, there is a noticeable
shi towards taking stock of existing
holdings, reviewing borrowing
structures, and ensuring current
portfolios remain sustainable in
a higher cost and more regulated
environment.
The challenge many landlords
face is clear. Research from Benham
and Reeves shows that monthly
BTL mortgage payments have risen
over the past decade, with some
experiencing cost increases of over
60%. However, it is important to
avoid treating all clients as though
they face the same level of pressure.
Outcomes will vary significantly
depending on when the original deal
was arranged and how the property
has performed since.
Those coming off rates secured
two or three years ago may still find
competitive options that limit any
increase in monthly payments,
especially if they are not looking
to raise additional capital, whereas
landlords exiting 5-year fixes agreed in
a much lower rate environment are far
more likely to experience a noticeable
shi in costs.
This is where clear, informed
advice becomes critical. Clients will
need help understanding not just the
headline rate, but the full cost of the
mortgage over the fixed period.
Key conversations
One of the most important
conversations advisers will have with
landlord clients over the coming
months is around the balance between
product fees and interest rates.
Higher fee products paired with
lower rates can make sense for
landlords focused on minimising
monthly outgoings and protecting
yield, especially across larger loan
sizes, while fee-free options with
slightly higher rates may appeal to
those prioritising upfront cost control
or shorter-term flexibility.
The key is ensuring landlords fully
understand the long-term impact
of each option, rather than focusing
solely on the initial headline figure,
and that requires a detailed and
tailored approach to advice.
Another area where adviser input
is essential is in assessing whether a
product transfer or a remortgage is
the right route, as both options have
a clear role depending on the client’s
wider objectives. Product transfers can
offer speed and simplicity, particularly
where the current lender remains
competitive and the landlord’s
circumstances have not changed
significantly, but they may not always
provide the best overall value.
LOUISA RITCHIE
is national account manager
at Fleet Mortgages
Full remortgages, while more
involved, can open access to different
pricing structures, lending criteria,
and portfolio solutions, which may
be particularly relevant for landlords
looking to restructure borrowing
across multiple properties. Plus, there
are oen further incentives with a
remortgage, such as free valuations.
Beyond single transactions
With regulatory pressures, tax
considerations, and financing costs
all evolving, landlords increasingly
need support in understanding when
it makes sense to reposition part or
all of their portfolio, rather than
simply replacing like-for-like deals as
they expire.
This could involve changes to
ownership structures, adjustments
to loan types, or a rebalancing of debt
across properties, all of which require
a more strategic approach to advice.
Aer a period earlier in the year
where product withdrawals and rate
changes created uncertainty, recent
weeks (as I write) have brought a
greater degree of stability.
That is particularly important as we
look ahead to the Autumn months,
when a significant volume of BTL
mortgages are due to mature.
Early engagement may be critical in
securing suitable options, managing
expectations around costs, and
ensuring any refinancing strategy
aligns with the landlord’s wider plans.
For brokers, the message is clear:
refinance is not just a short-term
opportunity, it is the core of the
market for the rest of this year
and beyond. Those who focus on
delivering detailed, portfolio-aware
advice will be the ones who retain
clients and build stronger, longer-term
relationships.
June 2026 | The Intermediary
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