The landlords who were planning to refinance expected to do so across an average of 3.7 mortgages.
For 38% of landlords with BTL borrowing, they also intend to remortgage or secure a product transfer over the next year, across an average of 2.9 mortgages.
Foundation said this presented an opportunity for brokers to support landlords looking for a more strategic view of their borrowing arrangements.
However, Pegasus Insight’s data also found that 44% of landlords were planning to scale back their lettings activity, with only 5% looking to expand their portfolios.
Nonetheless, 85% of landlords continued to make profit from their lettings activity.
Grant Hendry, director of sales at Foundation, 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.”
Landlords will face a four-percentage-point increase in property income tax come April 2027, estimated to cause an average dent of £36,000. Furthermore, rental supply has been shown to fall significantly this year, resulting in squeezed rental availability amid pre-existing tenant affordability challenges.
However, since landlords have still shown interest in investing in their portfolios, Hendry said: “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.”
