Almost half (46%) of portfolio landlords with four or more buy-to-let (BTL) properties have stated that they intend to refinance in the next 12 months, Pegasus Insight has revealed.

The firm’s latest Landlord Trends report found that portfolio borrowers who are planning to refinance expect to do so across an average of 3.7 mortgages each, highlighting the scale of these conversations.

Across all landlords with BTL borrowing, 38% intend to remortgage or product transfer over the same period, with those planning to refinance expecting to do so across an average of 2.9 mortgages.

Pegasus Insight said that for brokers, this presents an opportunity to support clients in taking more strategic view of their investments and borrowing arrangements.

Rather than focusing on the mortgage reaching the end of its term, early conversations can help establish what landlords what to achieve next, such as restructuring their portfolios, investing in different regions or exploring ways to add value to existing assets.

Pegasus Insight also found that there is an appetite for investment from landlords going forward.

While 44% of landlords are planning to scale back their lettings activity over the next 12 months, 5% intend to expand their portfolios. Expansion plans are most prominent among larger landlords, particularly those with 11 or more properties, limited company landlords and those who hold four or more BTL mortgages.

The firm said this suggests confidence remains strongest among more established investors.

Director of sales at Foundation, Grant Hendry, said: "The private rented sector continues to play a crucial role in the UK housing market, and these findings show that there is still a substantial number of landlords actively managing and investing in their portfolios. As operating conditions have changed, landlords have continued to show their resilience and ability to adapt, with the vast majority building diverse and profitable businesses.

"For proactive advisers, the level of refinancing anticipated over the coming year represents a valuable opportunity to have those conversations early and to add value by understanding what clients are looking to achieve. Rather than an exit, this is increasingly focused on adjusting their strategy, restructuring their portfolio and expanding their reach.

"The right funding remains absolutely crucial, particularly for larger portfolio landlords and those operating through limited companies, whose borrowing requirements can be more complex and may not always fit standard high street criteria. This is where a specialist lender like Foundation has an important role to play, providing the expertise, flexibility and range of options needed to support a broader range of property investors as their needs evolve."

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