News
Most landlords will select five-year fixes when remortgaging – Landbay
The majority of landlords – 71% – will choose a five-year fixed rate deal when it comes to remortgaging, a survey from a buy-to-let (BTL) lender found.
According to research from Landbay, this is a notable rise from the 49% of landlords who said they would go for a five-year fix last year.
The share of landlords who will choose a two-year fixed mortgage shrank from a third last year to two out of 10 in this year’s survey.
There was a small rise in landlords who were considering longer fixes of seven or 10 years, with 6% now set to choose this option, up from 4% previously.
Fewer landlords said they would choose a tracker mortgage than last year, falling from 14% in 2023 to 3% this time around.
Of the landlords planning to take out a five-year fixed rate, 71% operate within limited companies. Some 42% of landlords with portfolios of between four and 10 properties will select a five-year fix, as well as 24% of those with 20 or more properties.
Good broker-lender collaboration nourishes mortgage innovation
Sponsored by Skipton Building Society for Intermediaries
Rob Stanton (pictured), sales and distribution director at Landbay, said: “The topic of mortgage maturity is regularly discussed in the residential market, but we mustn’t forget the many landlords set to remortgage too. As we have seen in previous years, our data shows that fixed rate products continue to be the product choice for many, providing that welcome stability in a challenging market and climate.
“It is interesting to see a decline in demand for trackers, particularly as we enter a period where we could see further movement on base rate and, in turn, on mortgage rates. This, along with a small increase in demand for longer-term fixes, may highlight that some landlords are still a little way off from remortgaging and are hoping to make their move during more favourable market conditions.”
Stanton added: “It’s an important reminder that brokers need a broad range of products at their disposal to support a broad range of requirements among their landlord clients.
“This has been a primary focus at Landbay, making sure we have options to support all requirements, whether it’s trackers, two-year or five-year options – in addition to our like-for-like range to support those with no change to their current borrowing requirements.”