Should I remortgage or sell my rental properties?
When a fixed rate ends, landlords can refinance with a new lender, switch to a new product with their existing lender, or sell. Refinancing keeps the portfolio but may fail stress tests or squeeze cash flow at today's rates; selling releases equity and ends the risk but triggers Capital Gains Tax and sale costs.
Read more in our guide: Financial pressure and your portfolio
The three options compared
| Option | Main points |
|---|---|
| Product transfer | Same lender, often no new stress test or valuation; limited choice |
| Remortgage | New lender and rate; must pass ICR and LTV tests; fees and legal costs |
| Sell some | Reduces debt across the portfolio; CGT on gains sold |
| Sell all | Ends risk and management; CGT and sale costs |
Run the numbers
Start with net cash flow at the new rate: rent less mortgage, costs, voids and tax. Under Section 24, a higher-rate landlord can pay tax on profits that the mortgage has already consumed. Then check whether a new lender would lend at all, using the interest cover ratio.
Product transfers
Switching to a new deal with your current lender often needs no new affordability test or valuation, which helps when a remortgage would fail. Rates can be less competitive, and it postpones the decision rather than solving a cash flow problem.
When selling makes sense
- Cash flow is negative or close to it at realistic rates.
- Large capital works are due, such as EPC upgrades before 2030.
- You want to retire, or the portfolio has become a burden.
- Equity is high, so a sale releases significant cash even after tax.
A middle route
Selling the weakest properties and using the proceeds to reduce debt on the rest can turn a portfolio that fails stress tests into one that refinances comfortably. A phased sale also spreads gains across tax years, using more than one annual exempt amount.
Official Sources and Further Reading
- Bank of England: underwriting standards for buy-to-let mortgage contracts (SS13/16)
- GOV.UK: Capital Gains Tax
General information for landlords in England, checked against official sources in October 2026. It is not tax, legal or financial advice: speak to a qualified accountant or solicitor about your own circumstances.
Frequently Asked Questions
When a fixed rate ends, landlords can refinance with a new lender, switch to a new product with their existing lender, or sell. Refinancing keeps the portfolio but may fail stress tests or squeeze cash flow at today's rates; selling releases equity and ends the risk but triggers Capital Gains Tax and sale costs.
Several months ahead. Many lenders let you secure a new product up to six months before the current one ends.
It can, if the proceeds reduce borrowing enough to pass the lender's tests on what remains.
Not directly, but fees and interest are finance costs that individual landlords only get basic rate relief on.
Thinking About Selling Your Portfolio?
Ask for a no-obligation portfolio appraisal, or call us to talk through your options in confidence.