Remortgage Buy‑to‑Let | A Complete 2025 Guide for Portfolio Landlords.
Britain’s buy‑to‑let sector is evolving quickly. In 2025, more than 190,000 buy‑to‑let mortgages worth £26.2 billion will mature. That wave of expiries is creating both risk and opportunity for landlords as they move off older deals and face today’s interest‑rate environment. Remortgaging – switching to a new product or lender at the end of a fixed period – is one way to stay ahead. This guide explains how remortgage buy-to-let works, why portfolio reviews are vital, and how landlords can prepare for new rules.
What Is a Remortgage Buy-to-Let?
A remortgage replaces an existing buy-to-let loan with a new deal. It can be with the same lender or a different one. Reasons include reducing monthly payments, locking into lower rates, releasing equity or consolidating multiple mortgages. Timing is crucial. Reviewing options months before your fixed rate ends helps avoid costly variable rates. Landlords must check exit fees, valuation costs and whether a new deal matches their investment goals before switching.
Portfolio Landlords and Lending Criteria
The Prudential Regulation Authority (PRA) defines a portfolio landlord as owning four or more mortgaged properties. Lenders apply stricter rules. Mortgages are stress-tested at 2 % above the actual rate or a minimum of 5.5 %. Rental income must cover at least 145 % of stressed payments. Careful planning and often specialist advice are essential for portfolios.
Remortgage Buy‑to‑Let | The 2025 Buy-to-Let Market
Rising Remortgage Activity
Remortgaging dominated the buy-to-let sector in late 2024. Business worth £6.3 billion marked a 41.7 % annual increase. More than 190,000 buy-to-let loans mature in 2025, including 137,000 five-year fixes from 2020 and 54,000 two-year fixes from 2023. For some landlords, repayments may fall. For others leaving ultra-low 2020 rates, costs will rise despite rental growth of 33 % over five years.
Current Rates and Product Availability
Average buy-to-let rates in September 2025 were 4.88 % for two-year fixes and 5.21 % for five-year fixes. Rates peaked at 5.49 % in February but eased to 5.09 % by August. Product choice expanded to 4,509 mortgage deals. The cheapest rates usually require large deposits, often 25 %, and come with high arrangement fees of around 3 % of the loan. Some lenders cut rates further. The Mortgage Works offered selected deals at 2.79 %. BM Solutions launched remortgages starting at 3.99 %.
Market Fundamentals
In Q1 2025, 58,347 new buy-to-let loans worth £10.5 billion were advanced. Remortgaging accounted for £6.8 billion.
Gross rental yields averaged 6.94 %. Yet 11,830 mortgages were in serious arrears, and 810 properties were repossessed. Stress-testing affordability remains crucial.
Remortgage Buy‑to‑Let | Portfolio Landlord Strategies
Sentiment and Growth Plans
A 2025 survey showed 70 % of landlords still plan to expand portfolios despite economic pressures. Nearly 60 % expected house prices to increase slightly. Over 38 % used a buy-and-hold strategy, while others adopted BRRR or HMOs. Concerns included the Renters Reform Bill, rising costs, and future interest rates. Digital adoption is rising, with more landlords using AI tools.
Limited Company Structures
Tax changes mean many landlords now hold properties in limited companies. These allow full mortgage interest relief and lower corporation tax. By mid-2025, 30 % of portfolio landlords had at least one mortgage in a company structure. Most planned their next purchase this way.
Remortgage Buy‑to‑Let | Why a 360° Portfolio Review Matters
With so many loans maturing, a portfolio review is essential. Reviews examine mortgage terms, LTV ratios, rents, and EPC ratings.
Key Benefits
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Managing Maturities: Avoid reverting to costly variable rates by planning early.
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Releasing Equity: Use unmortgaged assets to raise funds for new purchases or upgrades.
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Optimising Cash Flow: Switching to interest-only loans may reduce monthly costs.
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Improving Terms: Revalue properties to secure lower LTVs and better rates.
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Preparing for Regulations: Energy standards are tightening. Upgrades may be required to achieve EPC C by 2028-2030.
What to Include in Your Review
| Review element | Why it matters | Supporting data |
|---|---|---|
| Mortgage maturities | Identify upcoming expiries to avoid reverting to higher standard rates. Over 190k BTL mortgages worth £26.2bn mature in 2025, including 137k five‑year fixes and 54k two‑year fixes. | Landlords reaching the end of 2020 five‑year deals will face higher borrowing costs despite rent growth. #LegalandGeneral |
| Interest rate trends | Monitor average rates and available deals. Average two-year fixed deals were 4.88%, five-year fixed deals were 5.21%, trending down to 5.09%. NRLA highlights remortgage deals from 2.99% up to 65% LTV. | Most low‑rate deals have high arrangement fees (~3 % of loan) and require deposits of 25–40 %. |
| Portfolio performance | Evaluate rental income, void periods, yields and property values. Average gross rental yield was 6.94 % in Q1 2025; rents have risen 33 % since 2020. | 38.7 % of landlords follow a buy‑and‑hold strategy; 29 % use BRRR. |
| Ownership structure | Decide whether to hold properties personally or via a limited company. 20 % of landlords have at least one limited‑company mortgage, rising to 30 % among portfolio landlords 63 % plan to buy through a company. | The average share of company-held portfolios increased from 36% (2020) to 74% (2025). |
| Energy performance | Plan upgrades ahead of proposed EPC C requirements. Since 2020, properties must meet at least EPC E; proposals would raise this to C by 2028–2030. | Some lenders offer enhanced LTVs (e.g., 80 % for EPC A–C) or fee refunds for improvements. |
| Regulatory and tax changes | Assess the impact of the Renters Reform Bill and Section 24 tax relief restrictions. 67 % of landlords are concerned about the Renters Reform Bill. | Corporate structures can restore full interest relief and lower tax rates; 74 % of company landlords’ portfolios are now incorporated. |
| Digital tools and broker relationships | Adopt technology to manage portfolios and work closely with advisers. 67.8 % of landlords use digital tools or AI at least occasionally. | Brokers play a vital role in tracking maturity dates and navigating lenders’ criteria. |
Remortgage Strategies for Portfolio Landlords
Release Equity Wisely
Target properties with strong capital growth and low LTVs. Remortgaging these assets can release funds for purchases or refurbishments. Paragon Bank reports that many landlords remortgage unmortgaged homes at lower LTVs to secure better rates.
Consolidate or Diversify
Assess whether combining mortgages under one lender could reduce costs and fees. Alternatively, spreading mortgages across lenders may lower risk exposure. Willow Private Finance highlights that some landlords in 2025 consolidate for efficiency, while others diversify for protection.
Optimise Loan Structures
Consider switching between capital-repayment and interest-only mortgages. Your decision should reflect your tax position, cash flow needs, and exit strategy. Explore top-slicing options, allowing borrowing against personal income where rental stress tests restrict loan sizes.
Prepare for Stress Tests
Lenders apply a stressed rate of 5.5% with a 145% interest coverage requirement. Ensure rental income meets these levels comfortably before applying. Selling weaker assets or converting properties to HMOs can improve rental yields and strengthen affordability.
Incorporate Thoughtfully
Assess whether using a limited company structure is appropriate for your portfolio. Limited companies benefit from full mortgage interest relief and corporation tax rates. However, they often require personal guarantees and may involve higher fees. Professional tax advice is essential before deciding.
Use Specialist Brokers and Digital Tools
A skilled broker understands portfolio lending criteria, product transfers, and lender appetite. This expertise can improve application success and save valuable time. Digital tools help track mortgage maturities, monitor rent rolls, and store EPC certificates securely.
Looking Ahead: Regulatory Changes and Sustainability
Tenant Protections
The government plans reforms through the Renters Reform Bill. Key proposals include ending Section 21 evictions and creating a landlord portal. Landlords must prepare for longer possession timelines and ensure agreements meet compliance standards.
Energy Efficiency
Since April 2020, rentals must meet EPC band E or higher. Draft rules propose EPC C for new tenancies by 2028 and existing tenancies by 2030. The suggested cost cap is £15,000. Some lenders already offer discounts, higher LTVs, or cashback for energy improvements. Portfolio landlords should complete EPC audits and plan property upgrades early.
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