Five-year fixed-rate dwelling loans are the most popular among landlords set to remortgage, says a Landbay research, however provides that curiosity is rising among two-year and tracker choices.
More than half of landlords, or 57%, instructed the buy-to-let lender they plan to decide on a five-year mounted charge once they come to remortgage – however a fall from 71% this time final yr.
In the final yr, landlord preferences have shifted with better curiosity round two-year fixes – the popular selection for 29% of landlords. This is up from two-in-ten in 2024.
It provides that tracker mortgages have additionally grown in choice, with 8% of landlords set to decide on this selection, “maybe reflecting expectations round rates of interest”.
This is a rise from 3% in 2024, however nonetheless not as excessive as 2023, when 14% of property traders made this their choice.
Longer-term fixes of seven or 10 years are unchanged from a yr in the past, with 6% of landlords choosing these phrases as their most popular decide.
Among landlords selecting five-year fixes, the most important group, 29%, is made up of landlords with portfolios between 4 and 10 properties — intently adopted by these with between 16 and 30 rental properties, at 26%.
Among BTL traders searching for a medium-term repair, the vast majority of their portfolios might be present in London and the South East.
Landbay gross sales and distribution director Rob Stanton says: “While the info has proven a rise in curiosity round tracker mortgages as some landlords look to trip the wave of potential rate of interest cuts, the overwhelming majority proceed to favour the soundness and certainty of a fixed-rate mortgage.
“Above all, it serves as a reminder of why it’s necessary that lenders provide a broad vary of choices to allow brokers to greatest help these landlords set to refinance.
“While the dialog round mortgage maturity continues to centre across the residential market, we can not overlook how a lot of an element that is within the BTL sector too.
“While these with shorter-term fixes could also be set for some reduction this yr, we can not overlook these set to return off extra beneficial offers and a time of upper working prices for landlords.”
