Buy-to-let mortgage brokers continue to favour five-year fixed-rate products for landlords, according to new data from specialist lender Landbay.
However, the findings also reveal a growing appetite for shorter-term deals, as expectations of further interest rate cuts shape market sentiment.
The survey, carried out in May, asked 60 brokers to name their current go-to recommendation for landlords. Fixed-rate products remained dominant, with 83% of respondents choosing them over trackers. Among fixed-rate options, five-year deals led the pack, cited by 42% of brokers. Two-year fixes were close behind at 38%, while just 3% of brokers pointed to 10-year fixes as the preferred route.
Rob Stanton, sales and distribution director at Landbay, said the results underscore brokers’ focus on offering stability amid ongoing economic uncertainty. “Brokers’ preference for 5-year fixed mortgages reflects their focus on providing landlords with stability in a volatile market,” he said. “It’s predictability over flexibility.”
The backdrop for these recommendations is a property finance landscape still navigating regulatory changes and broader economic pressures. Yet despite the continued popularity of five-year fixes, there are signs the market is evolving.
Landbay’s data suggests that short-term products are gaining ground, spurred on by the Bank of England’s recent rate decisions. Earlier this month, the Bank cut interest rates for the fourth time since August 2024, and further reductions are expected before the year’s end. Forecasts now suggest three more 0.25 percentage point cuts could follow, potentially bringing the base rate down to 3.5% by December.
This shift in monetary policy is prompting some brokers to reassess their strategies. Stanton noted that while long-term fixes dominated in 2022 – when 83% of landlords were eyeing five- or 10-year products – the market has moved on.
“Compare that to today with 55% of brokers saying trackers and short-term 2-year fixes are their go-to mortgage recommendation. In that context, it’s a completely different story.”
He attributed the change to a shift in landlord priorities. “Brokers’ recommendations suggest a strategic shift away from surety and predictability, towards affordability and profitability,” he said.
The broader mortgage market continues to reflect this rebalancing. While more than seven million UK households remain on fixed-rate mortgages, tracker products – which follow the Bank of England base rate plus a margin – are significantly less common, with fewer than 600,000 households using them.
Landbay’s polling reinforces a sense of cautious adaptation within the buy-to-let sector, as brokers weigh up the benefits of stability against the potential for lower costs in a falling rate environment. Although fixed-rate deals retain their lead, the narrowing margin between five-year and two-year recommendations suggests that flexibility is once again in favour.
