Landlords are increasingly opting for fixed rate deals when remortgaging, according to a survey by Landbay.
The research showed that over three-quarters of landlords prefer the certainty of a fixed rate, while 5-year fixed rates still the most popular product with 46% preferring this option.
However, the popularity of shorter-term fixes, such as 2- or 3-year fixed rate terms, has grown from 13% to 24% since the previous survey in August.
Meanwhile, the proportion of landlords considering a variable tracker rate has risen to 17%, compared to zero in the previous survey.
Respondents believe that rates will fall in the next year or two and do not want to commit to a long-term product.
Paul Brett (pictured), managing director, intermediaries at Landbay, said: “Fewer landlords are considering 5-year fixed rates and more are looking at 2-year fixes.
“A considerable rise in landlords is thinking of taking a tracker mortgage, up from zero to 17%.
“A tracker mortgage is a safer option for some who don’t want to commit to a fixed rate. The advantage with trackers is there are no early repayment charges so borrowers can move to a fixed product if rates come down later in the year.”
