Two in three new buy-to-let loans are remortgages
UK Finance's latest figures show 58,051 new buy-to-let loans in the second quarter of 2026, worth £10.7 billion. 39,631 of them were remortgages, about two in three, against 16,026 purchases. On top of that, 86,300 landlords switched to a new deal with their existing lender.
UK Finance puts the rise in remortgaging down to high numbers of fixed-rate loans expiring. Many are five-year fixes taken out in 2021, when rates were far lower. The average rate on new buy-to-let loans was 4.82%, so a landlord coming off 2.5% on a £200,000 interest-only loan goes from £417 a month to about £803. (UK Finance, buy-to-let update Q2 2026.)
“Compared with Q1 this year, the market appears more stable, with remortgaging edging up while lending for new purchases eased slightly. Looking ahead, higher borrowing costs are likely weighing down on buy-to-let demand, underpinning flatter lending growth across 2026.”
James Tatch, Head of Analytics, UK Finance
The payment is not the only thing that changes
When you remortgage, the new lender re-tests your rent against the loan. Most use a stress rate and want the rent to cover the interest by 125% or 145%. With rates higher than when you fixed, the same rent can support a smaller loan, even if the rent has gone up. Use the calculator above to see where you stand.
On average landlords are still comfortable: UK Finance puts average interest cover at 217%. But averages hide the tight cases, and London is the tightest, with the lowest yields and the lowest cover in the UK.
Switch with your lender, or remortgage?
- A switch (product transfer) usually needs no new rent test or valuation, so it can be the easy option if your rent is tight. But it is rarely the cheapest rate, and you can't usually raise money.
- A remortgage to a new lender can mean a better rate, releasing equity for a deposit on the next property, or moving to a lender that suits a portfolio, HMO or limited company better.
We compare both: your lender's offer against the whole market, on the total cost including fees, not just the rate.
If the rent doesn't cover the loan
- A 5-year fix. Many lenders test a 5-year fix at its actual rate, so it can support a bigger loan than a 2-year deal.
- Your tax position. Basic-rate and limited company borrowers are usually tested at 125%; higher-rate taxpayers borrowing personally at 145%.
- Personal income. Some lenders let your earnings top up a rent shortfall, case by case.
- A fee-assisted rate. A higher fee for a lower rate can lift the loan the rent supports.
- A small pay-down, or the switch with your current lender, if nothing else passes.
Every option is subject to the lender's underwriting and criteria, and the right one depends on your whole portfolio.
Start six months before your fix ends
Many lenders will hold a buy-to-let offer for around six months. Starting early lets you lock in a rate, move straight onto it when your fix ends, and avoid the lender's standard variable rate. Early repayment charges usually fall away on the last day of your fix, so time the completion for then.
Frequently asked questions
My buy-to-let fix is ending. Should I take my lender's product transfer?
Sometimes. A product transfer usually needs no new rent test or valuation, which helps if your rent is tight. But it is rarely the cheapest deal on the market, and it cannot release equity or move you to a lender with better terms. Compare it with a remortgage before you sign.
How early can I arrange my remortgage?
Many lenders will hold a buy-to-let mortgage offer for around six months, so start about six months before your fix ends. That way you can move straight onto the new deal without paying the lender's standard variable rate.
Why might I not be able to borrow the same amount as before?
Lenders re-test the rent against the new loan at a stress rate. With rates higher than in 2021, the same rent may support a smaller loan. A longer fix, a different rent-test basis or using some personal income can close the gap, case by case and subject to underwriting.
Is a 5-year fix easier to pass on rent?
Often, yes. Many lenders test a 5-year fix at its actual rate but test a 2-year fix or tracker at a higher notional rate, so the same rent can support a bigger loan on a 5-year fix.
What does a limited company change?
Lenders usually test a limited company or basic-rate taxpayer at 125% of the interest, but a higher-rate taxpayer borrowing personally at 145%. Moving properties into a company has tax and stamp duty costs, so take tax advice first.
What was the average buy-to-let rate in Q2 2026?
4.82% across all new buy-to-let loans, according to UK Finance, 0.12% higher than the quarter before and 0.18% lower than a year earlier.