Long-term fixed rates increasingly popular with buy-to-let borrowers
Fixed term buy-to-let mortgage products remain the most recommended by mortgage advisers, with an increased preference for five-year fixes evident, according to research by Paragon Mortgages.
While fixed rates overall remain the most popular choice for landlords, making up 81% of applications introduced by mortgage advisers in the third quarter of the year, there has been a small increase in preference for variable rate products (from 2% in quarter two, to 3% in quarter three) and for tracker products, up from 13% to 15% in the latest data.
John Heron, managing director of Paragon Mortgages, said: “The economic outlook remains uncertain and volatile. With some very low longer term fixed rates available in recent weeks it is no surprise that intermediaries are recommending these products to landlords who need a stable payment profile to help them manage the increase in tax that many will see as the changes introduced in the summer budget of 2015 start to bite.”