A five-year fixed rate is the product of choice for remortgaging landlords, new survey data from Landbay reveals.
More than half of landlords (57%) told the buy to let lender they will choose a five-year fixed rate when they come to remortgage – a drop from 71% this time last year.
In those 12 months, landlord preference has shifted with greater interest around two-year fixes – the preferred choice for 29% of landlords. This is an increase from 20% in 2024.
Tracker mortgages have also grown in preference, with 8% of landlords set to choose this option. This is an increase from 3% in 2024, but still not as high as 2023 where roughly one-in-seven landlords (14%) made this their preference.
Longer term fixes of seven or 10 years remains the same with 6% of landlords stating this as their preferred pick.
Of those planning to choose a five-year fixed rate, the biggest majority (29%) is made up of landlords with portfolios between four and 10 properties, closely followed by those with between 16 and 30 rental properties, at just over a quarter (26%).
Among those looking for a medium term fixed rate, the majority of their portfolios can be found in London and the South East.
Rob Stanton, sales and distribution director at Landbay, says: “While the data has shown an increase in interest around tracker mortgages as some landlords look to ride the wave of potential interest rate cuts, the overwhelming majority continue to favour the stability and certainty of a fixed-rate mortgage.
“Above all, it serves as a reminder why it’s important that lenders offer a broad range of options to enable brokers to best support those landlords set to refinance.
“While the conversation around mortgage maturity continues to centre around the residential market, we cannot overlook how much of a factor this is in the BTL sector too. While those with shorter term fixes may be set for some relief this year, we cannot forget those set to come off more favourable deals and a time of higher operating costs for landlords.”
This article is taken from Landlord Today