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D7
Refinance vs Hold vs Sell
When your fixed rate ends, you have three real choices. Here's how to weigh them.
Compare your options
Refinance
Pros
- Releases equity
- Locks in a known rate
- Keeps the asset
Cons
- Higher monthly payments at current rates
- Stress-test rules limit borrowing
- ICR may fail
Best for: Properties with strong rent cover and equity to extract.
Hold (revert to SVR / product transfer)
Pros
- No legal fees
- Quick
- Keeps lender relationship
Cons
- SVR can be expensive
- PT rates often worse than market
- Misses cashout opportunity
Best for: Short-term hold, low equity, or preparing to sell soon.
Sell
Pros
- Crystallise gains
- Removes refinance risk
- Frees capital
Cons
- CGT
- Selling costs
- Lose income
Best for: Marginal yields, EPC issues, or portfolio rebalancing.
Worked scenarios
BTL, 60% LTV, ICR 145% at 5.5% stress
| Option | Outcome |
|---|---|
| Refinance | Likely passes; cashout possible. |
| Hold | Use product transfer if cashflow tight. |
| Sell | Only for portfolio reasons. |
Decision checklist
- Get current valuation.
- Check ICR at 5.5% (or higher per lender).
- Compare 2-yr fix, 5-yr fix and tracker quotes.
- Model net rent after new rate.
- Estimate CGT if selling.
Related guides
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