Around 51 per cent of remortgage landlords are choosing a five-year fixed rate, which could be a sign of “restored confidence” in fixed rates, a lender survey has found.
Based on a Landbay survey, this is an increase of 11 per cent from April and is up from 46 per cent in December.
Prior to the mini Budget, around 68 per cent of remortgaging landlords chose a five-year fixed rate.
The proportion taking out a two-year fixed rate has remained stable at around a third over the course of the year, however, this is up from around a quarter in December.
There has also been a small rise in those choosing variable rate trackers at 13 per cent compared to four per cent in February. This is down from 17 per cent in December.
Only four per cent of landlords selected long-term fixed rates with seven to 10-year fixed rates, up from seven per cent in April and December.
Landbay: ‘Increased confidence in rate stability’
Rob Stanton (pictured), 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.”
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
