Remortgaging landlords still favouring five-year fixed rates

Published on

Latest data from Landbay reveals that buy-to-let landlords are continuing to opt for the stability that comes with a fixed-rate mortgage, with the majority set to choose a five-year fixed rate when they come to remortgage.

When asked for their loan of choice when they come to remortgage, 71% of landlords said they’ll choose a five-year fixed rate mortgage – an increase from 49% in Landbay’s previous survey last year. Two-in-10 landlords are set to opt for a shorter two-year fixed rate, a drop from a third in the previous survey.

Meanwhile, longer-term fixes of seven or 10 years saw a slight increase in preference, with 6% of landlords set to choose this option – up from 4% last time. Variable tracker rate mortgages are less popular than last year, with just 3% of landlords set to make this choice – a fall from 14% in 2023.

Of those planning to choose a five-year fixed rate, the majority is made up of those operating within limited companies (71%). At 42%, landlords with portfolios between four and 10 properties made up the biggest share of those opting for a five-year fix, followed by nearly a quarter of landlords with portfolios of 20 properties or more (24%).

Rob Stanton, 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.

“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.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Just Wealth posts 63% rise in assets under management as referrals grow

Just Wealth, the financial advice arm of Just Mortgages, said assets under management rose...

Growing demand for faster, more supportive broker service among first-time buyers

First-time buyers are leaning heavily on brokers for speed, reassurance and help navigating affordability...

Middle East conflict clouds mortgage rate outlook and Autumn Budget decisions

Energy market volatility has driven borrowing costs higher in recent weeks, forcing mortgage lenders...

Clydesdale Bank to raise selected residential and buy-to-let rates

Clydesdale Bank will increase a range of residential and buy-to-let fixed rates from Friday...

Virgin Money to raise selected mortgage and buy-to-let rates

Virgin Money is increasing a range of residential, remortgage, buy-to-let and product transfer rates...

Latest publication

Other news

Q&A: Anne-Marie Lister, Rebecca Hurdiss, Michelle Boylan & Manasi Nayyar, GB Bank

Mortgage Soup fires the questions at Anne-Marie Lister - chief operations & people officer...

Just Wealth posts 63% rise in assets under management as referrals grow

Just Wealth, the financial advice arm of Just Mortgages, said assets under management rose...

Growing demand for faster, more supportive broker service among first-time buyers

First-time buyers are leaning heavily on brokers for speed, reassurance and help navigating affordability...