But more landlords now consider shorter-term and tracker mortgages
Five-year fixed rates continue to be the most popular option among buy-to-let landlords preparing to remortgage, although its dominance has lessened over the past year.
A recent survey by Landbay has found that a majority, or 57%, of landlords intend to choose a five-year fixed rate, down from 71% reported in the previous year.
The data also indicate a notable increase in landlords opting for two-year fixed rates, with 29% expressing a preference for this product, up from 20% in 2024.
Tracker mortgages have seen a rise in interest as well, now chosen by 8% of respondents, compared to 3% last year. However, this remains below the 14% recorded in 2023.
Longer-term fixes of seven or 10 years have held steady, with 6% of landlords favouring these options.
Among those leaning towards five-year fixed rates, the largest group comprises landlords with portfolios of four to 10 properties, accounting for 29%. This is closely followed by landlords with 16 to 30 properties, who make up just over a quarter (26%) of this cohort. The majority of landlords seeking medium-term fixed rates when they remortgage are based in London and the South East.
“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 (pictured top), sales and distribution director at Landbay. “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 at a time of higher operating costs for landlords.”
The shift in landlord preferences means mortgage brokers must be prepared to advise on a wider range of products, including two-year fixes and trackers, not just five-year deals. Staying informed about changing landlord needs and product innovation will help brokers offer tailored solutions and maintain strong client relationships in an evolving buy-to-let market.
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