More than half of buy-to-let (BTL) landlords planned to choose a 5-year fixed rate when remortgaging, according to a survey from Landbay.
The survey found 57% would opt for this product, down from 71% last year.
2-year fixes became more popular, with 29% selecting this option, compared to 20% in the previous year.
Tracker mortgages saw increased interest, with 8% of landlords planning to use them, up from 3% last year.
7-year fixed rates or 10-year fixes remained steady at 6%.
Most landlords favouring 5-year fixes had portfolios of four to 10 properties (29%), followed by those with 16 to 30 properties (26%).
The majority of landlords choosing medium-term fixes owned property in London and the South East.
Rob Stanton, sales and distribution director at Landbay, said: “While the data has shown an increase in interest around tracker mortgages as some landlords look to ride the wave of potential interest rate cuts, the overwhelming majority continue to favour the stability and certainty of a fixed-rate mortgage.
“Above all, it serves as a reminder why it’s important that lenders offer a broad range of options to enable brokers to best support those landlords set to refinance.
“While the conversation around mortgage maturity continues to centre around the residential market, we cannot overlook how much of a factor this is in the BTL sector too.”
Stanton added: “While those with shorter term fixes may be set for some relief this year, we cannot forget those set to come off more favourable deals and a time of higher operating costs for landlords.
“Our product transfer offering is a great example of the innovation we are seeing in the market to provide options to landlords.
“It’s not just about giving them a safe landing, but the confidence to continue in the market or even to expand further – particularly with the addition of additional borrowing to our PT proposition.”
