A mortgage lender survey suggests landlords are returning to fixed rate mortgages.
Landbay says more investors are opting for five-year fixed mortgages again: 51 per cent of remortgaging landlords have reported that they would take a five-year fixed rate, an 11 per cent rise on the figure in April and slightly above last December’s 46 per cent.
Five-year fixed rates are regaining the popularity lost after the Liz Truss Budget last autumn. Before that catastrophic fiscal intervention, 68 per cent of remortgaging landlords had opted for this type of mortgage.
But the number of remortgaging landlords opting for two-year fixes has remained the same as in April. Almost a third said they would opt for a two-year fix, although the figure shows growing demand on last December when only 24 per cent said they would choose this type of mortgage.
The survey also reveals a small rise in those choosing variable tracker rates, with 13 per cent of landlords reporting that they would opt for a variable tracker rate mortgage compared to four per cent in April.
Fewer landlords – only four per cent - chose long-term fixed-rate mortgages of seven to 10 year terms.
A Landbay spokesperson says: “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.”
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