A new survey by Landbay reveals that buy-to-let landlords are overwhelmingly opting for five-year fixed-rate mortgages when it comes time to remortgage. According to the survey, 71% of landlords plan to choose a five-year fixed rate, a significant increase from the 49% reported in the previous year.

This preference for longer-term stability marks a shift in the market, with fewer landlords now favouring shorter-term options. Only 20% of landlords are leaning towards a two-year fixed rate, a notable decrease from the 33% who preferred this option last year. Interestingly, there has been a slight rise in interest for even longer-term fixes, such as seven or ten-year mortgages, with 6% of landlords indicating they would opt for these—up from 4% in the last survey.

Limited Companies Lead the Way in Five-Year Fixes
The survey also highlighted that landlords operating within limited companies are particularly inclined towards five-year fixed rates, with 71% of this group choosing this option. Among those with larger portfolios, especially landlords with four to ten properties, the preference for five-year fixed rates is even more pronounced, representing 42% of this segment. Meanwhile, nearly a quarter of landlords with portfolios exceeding 20 properties (24%) also favoured the five-year fix.

Rob Stanton, Sales and Distribution Director at Landbay, commented on these trends, stating, “The topic of mortgage maturity is regularly discussed in the residential market, but we mustn’t forget the many landlords set to remortgage too.” He noted that fixed-rate products remain popular due to the stability they offer in what he describes as a “challenging market and climate.”

Decline in Tracker Mortgages as Market Uncertainty Persists
The survey further revealed a sharp decline in the popularity of variable tracker rate mortgages. Only 3% of landlords are expected to choose this option, a steep drop from the 14% who favoured it last year. Stanton remarked on this shift, observing, “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.”

The modest increase in demand for longer-term fixes may suggest that some landlords are strategically waiting for potentially more favourable conditions before making their move. Stanton added, “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.”

Landlords Look to Secure Stability in a Volatile Market
As the market continues to navigate uncertain economic conditions, the survey results reflect a growing desire among landlords to secure long-term stability through fixed-rate mortgages. With the base rate in flux and market conditions unpredictable, landlords are evidently prioritising financial security over potential short-term gains.