The second quarter of the year saw 93% of landlords financing buy-to-let property choose a fixed rate mortgage, the latest Buy-to-let Mortgage Index from Mortgages for Business has revealed.
Five year fixed rates were the most popular choice for landlords dealing with Mortgages for Business, with 69% of landlords choosing this option.
David Whittaker (pictured), CEO of Mortgages for Business, said: “We’ve been recommending five year fixed rates for a long time. At the moment there is very little difference in pricing between fixed and variable rate products.
“In today’s uncertain economic climate, particularly the road crash Brexit negotiations, fixing makes a lot of sense, especially as the average price is just 3.52%. Why wouldn’t landlords make them a part of their business strategy?”
The index also found that an increasing number of lenders are offering products free from arrangement fees. In Q2, 20% of all products had no fee attached, up from just 14% in Q3 2017.
Other incentives were also on the increase, including cash back, free valuations and free legals for landlords remortgaging property.
The average flat arrangement fee, however, increased slightly in the quarter to an average of £1,389.