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Preference for two-year fixes rises among landlord remortgagors – Landbay

  • 22/06/2023
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Preference for two-year fixes rises among landlord remortgagors – Landbay
Buy-to-let borrowers are going for fixed rates when remortgaging and a rising proportion expect to choose a two-year term, a lender study has found.

According to Landbay’s latest landlord survey, 79 per cent of respondents say they will choose a fixed rate product when it comes to remortgaging. 

Two fifths will choose a five-year fix, down from 46 per cent who said so in December. This was also significantly lower than the 68 per cent who said they would go for a fix-year fix in August last year. 

Some 32 per cent of landlords said they will select a two-year fix, up from 24 per cent in December and 13 per cent in August last year. 

Landbay said the shift towards two-year fixes was probably due to the assumption that mortgage rates will fall as the government works towards lowering inflation. 

Additionally, the differentials between the rate of a two and five-year fixed mortgage have been close in recent months, and Landbay suggested that landlords did not want to lock into a rate in case prices came down. 

Just seven per cent of respondents favoured seven or 10-year fixes, while four per cent selected tracker products. 

Paul Brett, managing director, intermediaries at Landbay, said: “It’s interesting to see that there has been a rise in the number of remortgaging landlords considering two-year fixed rates and a drop in those opting for five-year fixes.  

“No one knows where rates will go but many of our survey respondents are hoping to see a fall within two years.” 

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