Landlords looking to refinance are shifting towards two-year fixed mortgages as rates rise again, with new search data showing borrowers are choosing flexibility over longer-term certainty.
Two-year fixes gain ground as mortgage pricing worsens
Moneyfactscompare.co.uk said demand for two-year fixed deals rose by 13 percent over the 30 days to 2 April compared with the previous month, while interest in five-year fixes fell by 9 percent. The shift came after average two-year fixed rates climbed by 99 basis points since early February, with five-year fixes also moving higher.
For landlords, that change in behaviour is easy to understand. When markets are volatile, locking into a five-year rate can feel expensive if there is still a chance pricing settles later in the year. A shorter fix gives more flexibility, even if it brings refinancing risk back into view sooner.
Landlord Knowledge recently reported that buy-to-let rates had hit their highest level in two years as lenders pulled products. It also covered how higher borrowing costs were already adding £1,100 to landlord bills. The latest search data suggests landlords and other borrowers are no longer treating higher rates as a brief wobble. They are adjusting strategy around them.
Flexibility has a price
According to the figures, two-year fixes accounted for 55 percent of total searches in March, up from 48 percent in February, while five-year fixes slipped from 28 percent to 25 percent. Landlords can track current pricing through Moneyfactscompare.co.uk’s mortgage rate tables. Variable-rate products also picked up interest, though from a lower base.
That does not mean shorter fixes are always the smarter choice. A two-year product can help landlords avoid overpaying if rates fall, but it also leaves them exposed if inflation stays sticky and lenders keep pricing high. Arrangement fees, exit fees and the cost of refinancing again in 2028 all need to be part of the calculation.
This follows Landlord Knowledge’s coverage of lenders targeting simpler buy-to-let cases with sharper pricing, which showed how fragmented the market has become. Some landlords can still access more competitive rates, but many are now making decisions based on speed, flexibility and affordability rather than trying to guess the absolute bottom of the rate cycle.
The contrarian point is that the rush into shorter fixes may prove badly timed if lenders keep repricing upwards through spring. Landlords who wait for a better market could end up refinancing into something worse. That makes broker advice, product transfer options and early rate monitoring more important than they were in a calmer market.
What this means for landlords
- If you’re remortgaging this year: compare two-year and five-year fixes on total cost, not just the headline rate.
- If you expect rates to ease: a shorter fix may preserve flexibility, but only if the numbers still work today.
- Watch for: fees, product transfer options and how long a lender will hold a rate before completion.
- If your margins are tight: stress-test the deal against higher costs in two years’ time, not just today’s payment.
- Bottom line: landlords are buying flexibility again, but flexibility only helps if the portfolio can absorb another refinancing decision sooner rather than later.
Editor’s view
The market is back to trading in shorter horizons. That may be sensible, but it also shows how little conviction borrowers have that today’s rate pain will fade quickly.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 10 April 2026
Sources: Moneyfactscompare.co.uk
Related reading: BTL rates hit highest level in two years as 1,300 mortgage products pulled
