The number of five-year fixed-rate buy-to-let mortgage products available to borrowers has more than doubled in two years, according to the latest research.
In the second quarter of 2014 there were an average of 128 such products available compared to just 50 in 2012, according to the report produced by specialist broker Mortgages for Business.
Managing director David Whittaker said the findings were a welcome development.
“Recent feedback from our landlord customers identified that 34 per cent would currently choose five-year fixed rates – not only because they are competitively priced but also to protect themselves against pending rate rises.”
The research found the increase in the number of longer-term products has been at the expense of one-year rates.
In 2010 one-year products accounted for 18 per cent of the market, but by the second quarter of 2014 this figure had dropped to just 1 per cent.
With rates likely to increase steadily over the next five years, it would be reasonable to assume that tracker rates would be cheaper than fixed rates; however, the research found that this is not the case.
Three and five year fixed rates generally cost little or no more than their tracker counterparts – giving borrowers even more incentive to switch to fixed rate buy to let products sooner rather than later.
