More landlords taking out 5-year fixes
A growing number of landlords are taking out five-year fixed rates, after they lost popularity following Liz Truss’s ill-fated mini-budget last year.
Over half (51%) of remortgaging landlords said they would take out a five-year fix, an 11% rise on April.
Their popularity has failed to reach pre-Liz Truss levels however, when 5-year fixes accounted for 68% of the remortgage market.
Rob Stanton, 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.”
Few landlords are taking out long-term fixed rate mortgages, at seven or 10-year terms, at just 4%, suggesting many are hoping mortgage rates come down.
the number of remortgaging landlords opting for two-year fixes has remained the same as in April.
Almost a third (32%) said they would opt for a two-year fix, although the figure shows growing demand on last December when only 24% said they would choose this type of mortgage.
There was a small rise in those choosing variable tracker rates, with 13% of landlords saying they would opt for a variable tracker rate mortgage compared to 4% in April. But the figure was higher, at 17% last December.