Why it matters
What Remortgaging means for a landlord
Remortgaging is where higher interest rates actually bite: a landlord coming off a cheap five-year fix can face a much larger payment and a fresh ICR stress test on today’s rates. If the property’s value has slipped or the rent has not kept pace, the achievable loan can shrink, sometimes forcing a cash injection or a sale. Planning the remortgage months ahead, checking value, rent and ICR early, is what separates a smooth switch from a forced decision.
Worked example
How it plays out
Paul’s five-year fixed rate ends in 2026. Six months before, he checks his flat’s value and rent, finds new rates much higher than his old deal, and runs the lender’s interest cover test at today’s rates. The loan still passes, so he arranges a product transfer to start the day his fixed rate ends.
Common mistakes
Where landlords go wrong
- 01Rolling onto the lender’s standard variable rate.
- 02Leaving it too late to compare offers.
- 03Not checking the interest cover test at current rates.
What to do
A short checklist
- Diary the end of each fixed rate six months ahead.
- Check value, rent and interest cover early.
- Compare a product transfer with offers from other lenders.
Sources
Checked against these sources on 16 September 2026. A guide to the rules in England, not legal advice: for a dispute or a possession claim, speak to a solicitor.
