Shorter fixes, bigger moves: how landlords are rethinking remortgages

As the mortgage market continues to evolve, landlords are reassessing their approach to refinancing. Our latest landlord survey reveals a clear trend: while five-year fixed rates remain the most popular option, their dominance is starting to slip as more landlords favour flexibility and shorter commitments.

Just 57% of landlords say they’ll choose a five-year fix when they next remortgage, down sharply from 71% last year. Meanwhile, demand for two-year fixes has jumped from 20% to 29%. Tracker mortgages, though still a minority choice, have seen interest nearly triple, rising from 3% to 8%.

Why the shift?

With the Bank of England base rate expected to fall, landlords are becoming more cautious about locking into longer-term deals at current rates. A shorter fixed term offers them the ability to reassess sooner and potentially access better pricing down the line.

The appeal of a five-year fix lies in its predictability, offering stable monthly payments over a longer horizon. But in a market that may soon favour lower rates, that same stability can feel limiting. A two-year fix strikes a middle ground, providing short-term certainty while keeping refinancing options open in the short term.

The growth in tracker interest shows that a small but growing number of landlords are prepared to ride the rate wave. If rates fall as predicted, they stand to benefit immediately.

Portfolio size influences product choice

Landlords with mid-sized portfolios, those with between 4 and 10 or 16 to 30 properties, remain the strongest supporters of five-year fixes. For these landlords, stability is key, particularly in the face of higher operating costs and potential legislative changes, such as the Renters’ Rights Bill.

Landlords with smaller portfolios, or those actively expanding, are more likely to explore shorter fixes or trackers. These landlords often have greater flexibility and a more opportunistic investment strategy.

Interestingly, longer-term fixes of 7 or 10 years remain niche. Just 6% of landlords are looking to lock in for the long haul, unchanged from last year. In a market full of uncertainty, that hesitancy to commit makes sense.

What this means for brokers

These evolving preferences are a reminder that there’s no one-size-fits-all approach to buy-to-let refinancing. Brokers need access to a broad and flexible product range to support landlords across all strategies and risk appetites.

We continue to expand and adapt our offering to meet those needs. Our product transfer options enable landlords to access new deals with less hassle. They can even include additional borrowing, providing landlords with more flexibility to upgrade or expand without a full remortgage.

As we’ve moved into the second half of the year, the direction of rates, regulatory changes, and economic headwinds will all play a role in landlord decision-making. The role of the broker has never been more important in helping clients navigate these changes with confidence.

For more information about our products or to discuss your next case, contact your local BDM.