Some 40% of residential landlords with a mortgage – fixed, tracker or discount – are due to renew their mortgage rate in the next seven months to one year.

That’s according to new research from The Mortgage Lender.

While two fifths of landlords have their mortgage coming up for renewal this year, a further 41% are due to renew their mortgage in the following three years.

According to the research, the majority of landlords with a mortgage are currently on a five year fixed mortgage (42%), while 21% are on a two year fixed deals. Some 15% are on Standard Variable Rate mortgages, and eight per cent are on a tracker.

TML claims that while mortgage rates have dropped from their peak, those needing to remortgage in the next year will very likely still have to pay more on their mortgage than they currently are or would have had to if they had taken out the same mortgage a few years ago. 

Of those landlords needing to renew their mortgage rate, they believe their monthly payments will increase by £615 on average.

To deal with higher monthly costs, 30% of landlords have said they plan to increase the rent of the property, 23% have already budgeted for an increase, while 14% said they would sell the property. A further 14% said they plan to convert the property into an HMO in order to secure better returns, and 13% are considering converting to a holiday let.

A TML spokesperson says: “With many due to remortgage this year, it’s important landlords speak to a broker to find the most suitable mortgage for them in order to maintain their property portfolios, particularly as costs of living challenges continue. Brokers can offer invaluable support and guidance to help provide a holistic view of what deals are most suitable for clients before they rush into any decisions.”