An increasing number of landlords looking to remortgage are now opting for five-year fixed mortgages, Landbay’s latest landlord survey shows.
There is a growing confidence among landlords as 51% of those looking to remortgage say they would take a five-year fixed rate. This is an 11% rise on April figure. It was 46% last December.
Landbay said that five-year fixed rates are regaining the popularity lost after the disastrous Liz Truss mini-budget last autumn. Before the budget, 68% of remortgaging landlords had opted for this type of mortgage.
However, the number of remortgaging landlords opting for two-year fixes has remained the same as in April. Almost a third (32%) said they would opt for a two-year fix.
This is despite the figure showing growing demand on last December when only 24% said they would choose this type of mortgage.
The survey also reveals a small rise in those choosing variable tracker rates, with 13% of landlords reporting that they would opt for a variable tracker rate mortgage compared to 4% in April. But the figure was higher, at 17% last December.
Fewer landlords– only 4% – chose long-term fixed-rate mortgages (7/10 year terms) – compared to 7% in April and last December.
Landbay sales and distribution director Rob Stanton 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.
“At Landbay, we always track the market. In the past few weeks alone, we have made four reductions to our fixed-rate products.”
