The majority of remortgaging BTL landlords prefer five-year fixed-rate products, but interest in other options is starting to grow.
A Landbay survey found 57% of landlords would choose a five-year fixed-rate product when it came to remortgaging.
However, this was lower than the 71% who felt this way the year before.
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 two-in-ten in 2024.
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 26%.
Tracker options are also attracting greater interest. This year’s survey revealed that 8% of landlords would choose a tracker option when remortgaging, up from 3% in last year’s research.
Longer term fixes of seven or 10 years remain the same with 6% of landlords stating this as their preferred pick.
“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,” said Rob Stanton, sales and distribution director at Landbay (pictured above).
“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.”
