Mortgage executives cautiously optimistic on sector’s outlook
While 2026 will be another demanding year for landlords, a powerful combination of falling rates, a huge remortgage pipeline and increasingly flexible specialist funding is creating meaningful upside for those ready to act. For brokers and professional investors, this is not just a story of survival – it is a year of opportunity.
A bright – and bigger – lending market
“The future looks bright, with 2026 set to see a predicted 11% rise in lending,” Martin Sims (pictured, top left), distribution director at Molo Finance, told Mortgage Introducer. That growth is not fuelled by speculative exuberance, but by a more measured appetite among investors who have already spent the past two years stress‑testing, cutting costs and reshaping portfolios.
One of the most important demand drivers is the wall of fixed‑rate deals due to mature. Sims expects “a continuation of maturing fixed‑rate deals that will drive continued growth in remortgaging throughout 2026.” Many landlords who locked into rock‑bottom rates in 2021 will come off those deals over the next 12 months.
“The timing could work in their favour,” he argues, with mortgage rates “expected to keep falling through to the end of 2026.” Meanwhile, gross rental yields are now averaging 7.1% across England and Wales. Against that backdrop, Sims expects many landlords to use remortgaging to raise capital for portfolio expansion – something Molo is already seeing as landlords reposition ahead of lower rates.
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Altura Mortgage Finance’s Guy Nyirenda shares that sense of guarded optimism. Landlords he speaks to are hopeful that “falling rates will allow them to refinance onto better mortgage products and reduce their costs,” even as they remain wary of tax and regulatory change.
For brokers, this creates a dual agenda: helping stressed landlords refinance to safety, and working with stronger clients to unlock equity for expansion.
International investors and specialist niches on the rise
Sims points to a second, increasingly important growth engine: overseas capital. “There is more appetite, and an area to keep an eye on are international investors coveting UK property,” he said. As exchange rates settle, the UK’s reputation for “stable property laws and transparent markets” is pulling in fresh capital that needs placing.
Crucially, lender attitudes to these borrowers are evolving. “Rather than blanket refusals based on overseas addresses, there is more nuance now,” he said. Lenders are looking at the strength of an applicant’s UK ties, the quality of the underlying asset and deposit size, rather than simply ticking an ‘onshore/offshore’ box.
Products geared towards these specialist cases – “covering non-UK residents, HMOs, multi-unit blocks and new builds” – are increasingly aligned with where investment is actually flowing. That dovetails neatly with broader landlord behaviour. As domestic landlords consolidate and seek higher returns, demand for HMOs, multi‑unit blocks and semi‑commercial assets is rising – exactly the segments where specialist funding excels.
Broker and adviser Euan Stewart sees “strong potential in niche strategies such as HMOs, MUBs and semi‑commercial,” particularly for professional landlords with the capacity to manage more complex stock. Tight supply and strong tenant demand mean the supply/demand imbalance is likely to support rental growth, he argued, further enhancing the appeal of higher‑yield niches.
Lenders tool up for 2026 – and speed becomes a differentiator
If 2025 was the year lenders focused on balance‑sheet resilience, 2026 looks more like a year of growth targets and product innovation.
“Lenders have big lending targets for 2026 and are looking for ways to improve the capacity for increasing lending to landlords,” said Nyirenda. One visible trend has been “the use of high‑fee, low‑rate products to allow for greater lending on ICR coverage,” along with more varied ERC structures to give landlords flexibility while still enabling lenders to maintain their margins and manage capital.
Nyirenda has also seen a wave of rebrands and new platforms aimed squarely at landlords and complex investment property. He highlighted One Savings Bank’s launch of Rely, “to specialise a service for landlords and complex investment property lending,” as an example of how lenders are segmenting their proposition around investor needs – something he describes as “very welcome.”
Speed is not just about service levels – it is becoming a competitive lever in its own right. As more landlords pursue value‑add strategies – refurbishments, reconfigurations, re‑tenancies – the ability to move quickly between short‑term and long‑term funding is critical.
Bridging, transitions and the new funding toolkit
That is where specialist and short‑term lenders step in. Kevin Gibson (pictured, top right) of Ascot Bridging Finance emphasised that mainstream appetite for landlord lending remains intact, but underwriting has become more nuanced – placing greater weight on portfolio quality, borrower experience and business plans.
In that environment, “we’re seeing increased use of specialist and short-term finance to help landlords manage transitions,” Gibson said. That includes supporting landlords facing refinancing pressure, funding refurbishment projects to lift rents and values, or bridging timing gaps between purchases and sales “before moving onto longer-term funding.”
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For growth‑minded landlords, this can be the difference between watching opportunities pass by and being able to act decisively. As Stewart notes, value‑adding strategies – from refurbishing tired stock to reconfiguring into HMOs or multi‑unit blocks – are becoming more common as a way to navigate tighter affordability and make refinancing stack up.
Brokers who understand this toolkit – and who can match landlords with the right lender for their particular asset, strategy and risk profile – will be central to unlocking those deals.
Brokers at the centre of the 2026 opportunity
If there's a downside risk to this opportunity‑rich environment, it is that some landlords still underestimate the pace and complexity of change.
“Many landlords have been working and planning in readiness for changes landing in 2026,” Sims said. In his view, “risks include not being responsive to this change.” On the flip side, “opportunities will come from being positive within the market as some exit. There has never been a better time for well-informed and proactive brokers to assist landlords.”
Sims expects changing “preferred” property types and geographic regions to define the next phase of investment. Regions and asset classes that previously led the cycle may not offer the best prospects from here; shifting into areas with stronger fundamentals often requires “different funding considerations,” he says – and brokers are well placed to structure those solutions.
Nyirenda agreed that 2026 is the year for deeper broker‑landlord dialogue. As rates drift downwards, “opportunities for landlords looking to expand and refresh their portfolio” will grow, particularly via refinance‑and‑release strategies. But to capture that, “it is important for brokers and their clients to be in discussion about their portfolio plans for the next 12 months so planning can begin now.” Staying close to lenders – and actively feeding back on where criteria tweaks could unlock more viable cases – is, in his view, part of a broker’s role in helping the market move forward.
Moloney, looking ahead to what he expects will be “a record number of remortgages,” underlined the importance of contact strategy. Lenders are already “focused on building their 2026 pipeline and ready to hit January 2026 hard.” Brokers who are in front of clients early will be best placed to shape that pipeline – and to defend their relationships as execution‑only models and regulatory change reshape the perimeter of advice.
Stewart framed the opportunity in simple terms: professional landlord set‑ups – with clear structures, robust tax planning and business‑like governance – will increasingly enjoy a “competitive edge with lenders and tenants.” For brokers, the challenge is to move beyond case‑by‑case sourcing and:
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Take a portfolio‑wide view, aligning refinancing, releases and new purchases around a coherent strategy.
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Start refinance planning earlier, particularly for landlords coming off ultra‑low fixes.
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Coordinate closely with accountants on structure and tax implications, including limited company use and group structures.
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Tailor guidance to landlord type, from small landlords weighing up whether to exit or professionalise, to portfolio operators focused on gearing, diversification and scale.
Gibson believes the brokers who thrive in 2026 will be those who adopt that strategic stance. “The key role in 2026 is being proactive,” he said – mapping refinancing points, stress‑testing portfolio performance, and ensuring clients “choose the right funding for their strategy rather than chasing the cheapest rate.”
A market in transition – and a window of opportunity
Taken together, the picture that emerges for 2026 is of a market in controlled transition. Some landlords will continue to feel the strain of higher rates, increased regulation and tighter affordability. Some will choose to exit, particularly at the smaller end. But for well‑prepared investors – domestic and international alike – this is a year when capital, specialist product innovation and a favourable rental backdrop combine to create real upside.
