According to a survey from Landbay, which polled 700 landlords, 78 per cent of respondents said they would choose a fixed rate.
Within that 46 per cent would choose a five-year fixed rate, although the lender said that this was down from 68 per cent in August which was the last time the survey was done.
Short-term fixed rates of two or three-year terms accounts for 24 per cent of landlords looking to remortgage, which is an increase from 13 per cent in the previous survey.
The report added that 17 per cent of respondents would consider a variable tracker rate, and six per cent said they would revert to the standard variable rate (SVR).
In the previous survey no landlords said they would take up a tracker. Landbay attributed this increase to economic uncertainty as respondents believed rates would come down in the next few years so didn’t want to commit to a longer-term fixed rate.
Paul Brett (pictured), managing director for intermediaries at Landbay, said: “When we talk about this record year of mortgage maturity, much of the conversation is focused on first-time buyers or traditional households. It’s important we remember the many landlords who are set to remortgage too, and judging by our latest data, fixes still look like the preferred product.
“However, it’s interesting to see how landlords’ views of their remortgaging options have changed since September’s mini Budget. Fewer landlords are considering five-year fixed rates and more are looking at two-year fixes.”
He added: “There was a considerable rise in landlords thinking of taking a tracker mortgage, up from zero to 17 per cent. A tracker mortgage is a safer option for some who don’t want to commit to a fixed rate. The advantage with trackers is there are no early repayment charges so borrowers can move to a fixed product if rates come down later in the year.”
