Remortgaging landlords have demonstrated a restored confidence in fixed rate mortgages, according to Landbay’s latest landlord survey.
More than half (51%) of remortgaging landlords reported that they would take a 5-year fixed rate, an 11% rise on April, although the figure was 46% last December.
5-year fixed rates regained the popularity lost after the Liz Truss mini-Budget last autumn.
Before that point, 68% of remortgaging landlords had opted for this type of mortgage.
The number of remortgaging landlords opting for 2-year fixes remained the same as in April.
Almost a third (32%) said they would opt for a 2-year fix, although the figure showed growing demand compared with 24% last December.
The survey also revealed a small rise in those choosing variable tracker rates, with 13% of landlords reporting that they would opt for this compared with 4% in April, though the figure was higher, at 17%, last December.
Fewer landlords (4%) chose long-term fixed-rate mortgages, at 7-year and 10-year terms, compared with 7% in April and last December.
Rob Stanton (pictured), 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.
“At Landbay, we always track the market. In the past few weeks alone, we have made four reductions to our fixed-rate products.”
