Remortgage Buy-to-Let | When Sarah first explored remortgaging a buy-to-let, she was not looking to buy a new property. She simply wanted her portfolio to work harder. Her fixed rate was ending, rental income had increased, and she knew there had to be a better way to manage cash flow. By carefully reviewing her options, she discovered that remortgaging a buy-to-let property could reduce costs, release equity, and support her long-term investment goals.
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 you avoid costly variable rates. Landlords must check exit fees, valuation costs, and whether a new deal aligns with their investment goals before switching.
Why Landlords Choose to Remortgage Buy-to-let Properties
Landlords remortgage for practical and strategic reasons. Common motivations include:
- Reducing monthly mortgage payments
- Moving from a variable rate to a fixed rate
- Releasing equity to fund another purchase
- Consolidating borrowing across multiple properties
Some landlords also review ownership structures at this stage, including Limited Company Buy-to-Let, where tax efficiency or portfolio growth is a priority.
Remortgage Buy To Let Options
Buy-to-let remortgage options depend on several factors. These include rental income, loan-to-value, credit history, and property type. Lenders will assess affordability using rental coverage and stress-testing rules.
In some cases, landlords may consider alternatives, such as Second-Charge Mortgages, if they wish to raise funds without replacing their existing mortgage. Short-term solutions, such as Bridging Loans, may also be suitable when timing is critical.
All lending is subject to status, affordability checks, and lender criteria.
Remortgage Buy‑to‑Let | Portfolio Landlord Strategies
A 2025 survey found that 70% of landlords still plan to expand their 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 provide full mortgage interest relief and lower the corporation tax rate. By mid-2025, 30 % of portfolio landlords had at least one mortgage in a company structure. Most planned their next purchase this way.
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
- Managing Maturities: Avoid reverting to costly variable rates by planning early.
- Releasing Equity: Use unmortgaged assets to raise funds for new purchases or upgrades.
- Optimising Cash Flow: Switching to interest-only loans may reduce monthly costs.
- Improving Terms: Revalue properties to secure lower LTVs and better rates.
- 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. |
Remortgaging strategies for portfolio landlords
For portfolio landlords, remortgaging is a structured financing option to improve efficiency across multiple properties. It can help manage risk, support portfolio growth, and strengthen long term cash flow. Common objectives include securing more suitable interest rates, releasing equity for reinvestment, and simplifying existing borrowing arrangements.
Core remortgage strategies
Rate switching and product transfers
One of the most common strategies is moving to a new mortgage deal before a fixed rate ends. This helps prevent a return to a higher standard variable rate. Many landlords choose longer fixed-term products, such as five-year terms, to provide greater payment certainty. A product transfer with an existing lender may be quicker to complete and involve lower upfront costs, though options may be more limited.
Equity release and reinvestment
Remortgaging properties that have increased in value can allow landlords to release capital. This funding is often used to improve existing properties, such as implementing energy-efficiency upgrades to meet future EPC requirements. It may also be used as a deposit for further purchases. This approach is commonly associated with structured investment models that focus on long-term portfolio growth.
Portfolio refinancing and consolidation
Some landlords choose to refinance several properties under a single portfolio mortgage. This can simplify administration and centralise borrowing with one specialist lender. In some cases, overall terms may improve, although this approach may require linking properties for security. Independent advice is important when considering this structure.
Optimising loan structures
Interest-only and repayment options
Switching between interest-only and repayment mortgages can form part of a wider financial plan. Interest-only arrangements may improve monthly cash flow, while repayment mortgages gradually reduce the loan balance. The right approach depends on income, tax position, and long-term objectives.
Limited company ownership
Holding buy-to-let properties within a limited company or special purpose vehicle can offer tax-related benefits for some landlords. This includes the ability to offset mortgage interest as a business expense. This structure has become more common following changes to tax treatment for individual landlords, although suitability depends on personal circumstances and professional advice.
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 that agreements comply with applicable standards.
Energy Efficiency
Since April 2020, rentals have required an EPC rating of 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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