Behind every mortgage application is a story. For some landlords, rising interest costs and tighter stress tests have made refinancing feel like an uphill battle. But with the right approach, even landlords facing serious cashflow pressure can find solutions. This case study shows how one landlord restructured their mortgages in 2025, cut costs and released equity to fund future growth.
Meet the Landlord
Our example landlord owned a mixed portfolio of six properties across the Midlands, with a total value of just over £1.5m. Three mortgages were due to expire within six months, and reverting to lender standard variable rates would have increased monthly payments by nearly £2,000. The landlord was also keen to release funds to invest in further acquisitions.
The Mortgage Challenge
Several obstacles made refinancing difficult:
- Two low-yield flats generating modest rental income.
- High gearing on one terraced house (78% LTV).
- A patchwork of different lenders with varying criteria.
- Risk of affordability failure if each property was tested in isolation.
On paper, the landlord looked stretched. Without careful planning, lenders could have declined the applications.
How the Broker Approached the Problem
The landlord worked with a specialist broker to map out the portfolio in detail. The broker:
- Prepared a consolidated portfolio spreadsheet with LTV and ICR for each unit.
- Identified two strong-yielding HMOs as “anchor” properties to support weaker flats.
- Recommended refinancing in stages, starting with the high-yield units to build affordability headroom.
- Targeted lenders that assessed affordability at pay rate for five-year fixes, rather than inflated stress rates.
The Solution
The restructuring plan looked like this:
- Step 1: Refinance two HMOs at 70% LTV, securing five-year fixes that passed affordability easily and released £75,000 equity.
- Step 2: Use part of the equity to reduce balances on the weak flats, improving their ICR to meet lender minimums.
- Step 3: Refinance the flats on new five-year fixes, preventing them from falling onto reversion rates.
- Step 4: Ringfence the remaining equity as a deposit for a new purchase the following year.
The Outcome
The landlord achieved four wins from the restructure:
- £1,800 annual saving per property across three refinances compared with reversion rates.
- £75,000 equity released to reinvest.
- Stronger affordability profile thanks to staged refinancing and equity redistribution.
- Improved portfolio stability with all six mortgages aligned to longer-term fixes.
In total, the restructure improved portfolio cashflow by over £12,000 annually, while creating capacity for further growth.
Lessons for Other Landlords
- Look at the portfolio as a whole, not just each property in isolation.
- Sequence refinances so strong units carry weaker ones.
- Use equity strategically to rebalance affordability across the portfolio.
- Target lenders with favourable stress testing on longer fixes to maximise borrowing.
- Engage specialist brokers who know which lenders accept portfolio-based solutions.
Final Thoughts
This landlord’s story shows that even when affordability looks tight, restructuring can unlock significant savings and new opportunities. The key is to plan early, understand lender rules, and view refinancing as a portfolio strategy rather than a one-off event.
Speak to Our Sponsor
Our sponsor helps landlords restructure portfolios every day. Whether you want to cut costs, release equity or align multiple mortgages, they can model the numbers and match you with lenders who understand your circumstances.
Contact Our Buy-to-Let Mortgage Broker Sponsor
Publication date: Monday, 20 October 2025