Five-year fixed-rate residence loans are the most well-liked amongst landlords set to remortgage, says a Landbay research, however provides that curiosity is rising amongst two-year and tracker choices.
More than half of landlords, or 57%, informed the buy-to-let lender they plan to decide on a five-year mounted charge after they come to remortgage – however a fall from 71% this time final 12 months.
In the final 12 months, landlord preferences have shifted with larger curiosity round two-year fixes – the popular alternative 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 curiosity rates”.
This is a rise from 3% in 2024, however nonetheless not as excessive as 2023, when 14% of property buyers made this their choice.
Longer-term fixes of seven or 10 years are unchanged from a 12 months in the past, with 6% of landlords choosing these phrases as their most popular choose.
Among landlords selecting five-year fixes, the biggest 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 buyers in search of a medium-term repair, the vast majority of their portfolios may 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 steadiness and certainty of a fixed-rate mortgage.
“Above all, it serves as a reminder of why it’s essential that lenders provide a broad vary of choices to allow brokers to greatest assist these landlords set to refinance.
“While the dialog round mortgage maturity continues to centre across the residential market, we can’t 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 aid this 12 months, we can’t neglect these set to return off extra beneficial offers and a time of upper working prices for landlords.”
