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.”
