Resurgence in landlord confidence

Landlord remortgaging their properties have displayed renewed faith in fixed rate mortgages. A recent survey of these property owners has shown a resurgence in the popularity of five-year fixed mortgages[1].

The survey revealed that 51% of landlords who were considering remortgaging would choose this type of mortgage product, marking an 11% increase since April last year. However, it is worth noting that the figure was slightly lower, at 46%, back in December 2022.

POPULARITY OF FIVE-YEAR FIXED RATES

Five-year fixed rates are once again becoming a favoured choice, bouncing back from the dip in popularity following Liz Truss’s 2022 Autumn Budget. Before the budget announcement, a substantial 68% of landlords remortgaging their properties chose this type of mortgage.

Interestingly, the number of landlords opting for two-year fixed mortgages has held steady since April 2023, with 32% stating they would select this option. This shows an increase in demand compared to December 2022, when only 24% would have chosen this type of mortgage.

RISE OF VARIABLE TRACKER RATES

The survey also uncovered a slight increase in landlords choosing variable tracker rates. A total of 13% of landlords stated that they would opt for a variable tracker rate mortgage, a significant rise compared to just 4% in April 2023. However, this figure was somewhat higher, at 17%, in December 2022.

On the other hand, fewer landlords – a mere 4% – opted for long-term fixed rate mortgages (seven to ten-year terms), a decrease from the 7% reported in both April and December 2022.

CONFIDENCE IN THE STABILITY OF INTEREST RATES

The survey findings hint at a rejuvenated interest in five-year fixed rates, indicating an increased confidence in the stability of interest rates. The growth in landlords choosing variable tracker rate products suggests that some may anticipate a decrease in base rates sooner rather than later. Others may view these products as a temporary solution.

Don’t forget, our professional friendly advisors are on hand to support you and can help you explore all of your options.

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