"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"
- Rob Stanton - Landbay
A five-year fixed rate remains the most popular product among buy-to-let landlords preparing to remortgage, although interest in shorter terms and tracker options is increasing, according to the latest survey by Landbay.
Changing preferences among landlords
More than half of landlords (57%) said they plan to take a five-year fixed rate when remortgaging. This represents a decline from 71% in the same period last year.
At the same time, interest in two-year fixed products has risen, with 29% of landlords preferring this option compared with 20% in 2024. Tracker mortgages are also gaining traction, chosen by 8% of respondents compared with 3% last year. However, tracker popularity is still below 2023 levels, when 14% of landlords favoured this choice.
Longer-term fixes of seven or 10 years remain stable, with 6% of landlords opting for these products.
Portfolio size and regional differences
Among landlords favouring five-year fixed deals, 29% hold portfolios of between four and 10 properties, while 26% own between 16 and 30 rental properties. Those leaning toward medium-term fixes are more likely to have portfolios concentrated in London and the South East.
The survey, which canvasses existing landlords on a range of market issues, also considered perspectives on regulation, government policy and the overall outlook for the buy-to-let sector.
Stability remains a priority
“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," comments Rob Stanton, sales and distribution director at Landbay. "Above all, it serves as a reminder of why it’s important that lenders offer a broad range of options to enable brokers to best support those landlords set to refinance."
He added, “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. 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.”
