"Our survey shows a renewed appetite for five-year fixed rates, demonstrating an increased confidence in interest rate stability."
- Rob Stanton, sales and distribution director at Landbay
Remortgaging landlords are demonstrating a restored confidence in fixed rate mortgages, with more opting for five-year products again, Landbay’s latest landlord survey shows.
51% of remortgaging landlords have reported that they would take a five-year fixed rate, an 11% rise on April and up from 46% last December.
Before Liz Truss's Budget last year, 68% of remortgaging landlords had opted for this type of mortgage.
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, although the figure shows 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.
Rob Stanton, sales and distribution director at Landbay, 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.”
