Mortgages

Five-year fixes account for 42% of buy-to-let business

Rozi Jones
|
13th June 2018
BTL buy to let sign
"With extremely competitive rates and the added security that they present, it is not surprising that they are a popular option for investors."

Buy to Let Club says it has seen a strong rise in buy-to-let borrowers choosing five-year fixed rate products.

The percentage of its buy-to-let business resulting from five-year fixed products has risen to 42%, up from just 15% of business two years ago.

Buy to Let Club believes landlords are seeking greater security during a time of economic uncertainty as Brexit negotiations continue, but also noted that five-year fixed rates have remained at an historic low.

Ying Tan, managing director of Buy to Let Club, said: “We’ve seen a steady increase in the number of clients opting for five-year fixed rates over the last few years. With extremely competitive rates and the added security that they present, it is not surprising that they are a popular option for investors.

"Of course they also have the added benefit of less stringent affordability tests that make them appealing for raising finance against low-yielding properties."

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