0:04 AM, 1st December 2023, About 3 months ago 1
Remortgaging landlords are showing more confidence in five-year fixed rate mortgages than they did earlier this year, a survey has found.
According to the research from Landbay, more than half (51%) of the remortgaging landlords said they would choose a five-year fixed rate mortgage, up from 40% in April.
This is also higher than the 46% recorded in December last year, when the Liz Truss mini-Budget had dampened the demand for longer-term fixed rates.
Before the Budget, 68% of the remortgaging landlords had opted for a five-year fixed rate mortgage, indicating a strong preference for stability and certainty.
Landbay’s 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.”
The survey from the specialist buy to let lender also shows that the popularity of two-year fixed rate BTL mortgages has remained steady, with 32% of the remortgaging landlords saying they would go for this option, the same as in April.
However, this is an increase from December last year, when only 24% had chosen a two-year fixed rate mortgage.
Meanwhile, the interest in variable tracker rate mortgages has risen slightly, with 13% of the remortgaging landlords saying they would select this type of mortgage, compared to 4% in April.
This is still lower than the 17% recorded in December last year.
The survey also reveals that only 4% of the remortgaging landlords would choose a long-term fixed rate mortgage (seven/10 year terms), down from 7% in April and December last year.
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