Buy-to-let landlords are increasingly looking beyond the traditional five-year fixed mortgage, with new research from Landbay showing a marked rise in demand for shorter-term deals and trackers.

The specialist lender’s survey found that 57% of landlords plan to choose a five-year fixed rate when they come to remortgage. While still the majority, this represents a sharp decline from the 71% recorded a year ago.

TWO-YEAR FIXES ON THE RISE

Interest in two-year fixes has grown steadily, with 29% of landlords now favouring this option compared with 20% in 2024. The shift is seen by some as a reflection of expectations that interest rates could ease further in the near term, encouraging borrowers to avoid locking in for too long.

Trackers are also regaining traction, with 8% of landlords set to choose one – up from 3% last year, though still below the 14% seen in 2023. Longer-term seven or 10-year fixes remain a niche choice, unchanged at 6%.

PORTFOLIO LANDLORDS LEAD THE FIVE-YEAR TREND

The preference for five-year fixes is strongest among landlords with medium-sized portfolios. Nearly three in 10 of those holding between four and 10 properties intend to secure a five-year rate, while just over a quarter of those with 16 to 30 properties said the same. Medium-term fixes are particularly popular among landlords with holdings in London and the South East.

INSIGHT INTO LANDLORD SENTIMENT

The findings are part of Landbay’s wider survey into landlord sentiment, covering regulation, government policy and the outlook for the buy-to-let market.

Rob Stanton, sales and distribution director at Landbay, said: “While the data has shown an increase in interest around tracker mortgages as some landlords look to ride the wave of potential interest rate cuts, the overwhelming majority continue to favour the stability and certainty of a fixed-rate mortgage.

“Above all, it serves as a reminder why it’s important that lenders offer a broad range of options to enable brokers to best support those landlords set to refinance.

“While the conversation around mortgage maturity continues to centre around the residential market, we cannot overlook how much of a factor this is in the buy-to-let sector too.

“While those with shorter term fixes may be set for some relief this year, we cannot forget those set to come off more favourable deals and a time of higher operating costs for landlords.

“Our product transfer offering is a great example of the innovation we are seeing in the market to provide options to landlords. It’s not just about giving them a safe landing, but the confidence to continue in the market or even to expand further – particularly with the addition of additional borrowing to our PT proposition.”