More remortgaging landlords are opting for five-year fixed mortgages, according to Landbay’s latest survey.
Over half (51%) of remortgaging landlords would take a five-year fixed rate, an 11% rise on April, although the figure was 46% last December.
The report shows that five-year fixed rates are regaining the popularity lost after the Liz Truss Budget last autumn; before this, 68% of remortgaging landlords had opted for this type of mortgage.
The number of remortgaging landlords opting for two-year fixes has not changed since April (32%), but has grown since last December (24%).
The research also revealed a small rise in those choosing variable tracker rates, with 13% of landlords stating they would opt for a variable tracker rate mortgage compared to 4% in April, down from a high of 17% last December.
Fewer landlords — only 4% — chose long-term fixed-rate mortgages (seven/10-year terms), compared to 7% in April and last December.
Rob Stanton, sales and distribution director at Landbay (pictured above), said: “Our survey shows a renewed appetite for five-year fixed rates, demonstrating an increased confidence in interest rate stability.
“The increase in landlords opting for variable tracker rate products shows that some may be hedging their bets that base rates will come down sooner rather than later, while others may see these products as a temporary solution.”
