Around two-thirds of landlord mortgage searches now relate to refinancing as investors look to secure rates and strengthen their position amid rising costs

Landlords are focusing their attention on getting their finances into shape rather than expanding their portfolios, as tax and regulatory pressures reshape the buy-to-let market, it has been claimed.

Data from Mortgage technology platform Twenty7tec shows buy-to-let purchase searches are down 13.7% year-on-year, while remortgage searches are up 6%. Around two-thirds of landlord mortgage searches now relate to refinancing as investors look to secure rates and strengthen their position amid rising costs.

And the firm says its higher mortgage rates, weaker yields and uncertainty around the Renters’ Rights Bill that are driving this trend.

Nakita Moss, Head of Lender Relationships at Twenty7tec, says: We’re seeing a clear behavioural shift as landlords respond to higher borrowing costs and tighter yields.

More landlords are focused on refinancing rather than expanding, taking advantage of stabilising rates to secure long-term certainty. The era of portfolio growth has paused – for now, it’s about resilience and risk management, Moss said.

Nathan Reilly, its Commercial Director, adds: The figures suggest a market in transition: steady, active, and cautious. Landlords appear to be locking in rates while they can, signalling confidence in the long-term rental market but restraint when it comes to expansion.

And Alex Greenin, The Mortgage Guy, adds: I have seen a bit of a slowdown in buy-to-let purchases, but people are still investing, just not at full speed. They’re being more calculated with their choices.

I completely agree that landlords are focusing on remortgaging as fixed rates come to an end. They’re working hard to make their portfolios perform as efficiently as possible. The smaller, back-room landlords have definitely taken a hit over the past few years. There isn’t as much profit in buy-to-lets as there used to be, and that’s forcing many to rethink their strategy rather than expand.