Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Over £50bn in BTL Mortgages Set to Mature in 2026, Says Sedgwick

Industry data suggests that more than £50bn worth of fixed rate buy-to-let (BTL) mortgages are maturing across 2026. Many landlords are now refinancing multiple properties as they return to a market with significantly higher borrowing costs than when their original deals were fixed.

Louisa Sedgwick, managing director of mortgages at Paragon Bank, notes that this refinancing cycle is more complex than a simple product replacement. The shift in market conditions is influenced by global events affecting interest rates and swap rates, which underpin the pricing of fixed rate mortgages. Lenders may need to reprice or withdraw products at short notice in response to volatile funding markets.

Some landlords are moving from rates below 3% to much higher rates, making affordability a key challenge. Options such as different fee structures and product transfers can help ease the transition, reducing the time, cost, and administration compared to a full remortgage. Variable rate options, including tracker mortgages, may offer flexibility for landlords who wish to monitor the market before locking into a fixed rate.

Sedgwick highlights the importance of brokers adopting a relationship-based approach, supporting landlords not only with immediate refinancing but also with longer-term portfolio planning. Refinancing is increasingly linked to funding property improvements, reshaping portfolios, or supporting new acquisitions.

The sector is also facing new regulatory requirements. The Renters’ Rights Act, the introduction of the Decent Homes Standard, Awaab’s Law, and proposed changes to Minimum Energy Efficiency Standards (MEES) are expected to require significant investment. Government data indicates that over two million rented homes currently fall below Energy Performance Certificate (EPC) C, with modelling suggesting average upgrade costs of £5,400 per property to meet proposed standards.

These developments underline the ongoing need for brokers to support landlords through both financial and regulatory changes in the UK property market.