Demand for 2-year fixed buy to lets surges in Q1

Last year the popularity of long term fix products were at a high, with the expectation of an imminent rate rise from a historical low.  However, at the end of the Q1 2015, there has been a noticeable shift back towards shorter term fix products, particularly two year fix rates.
 

Lenders such as Natwest, Accord and Santander are offering very competitive two year fixed rates, and with the differential in rates and fees negligible compared to tracker rates, landlords are opting for the former. 

Ying Tan, managing director of The Buy to Let Business and Buy to Let Club, says:

“With inflation low and rates unlikely to change anytime soon two-year fixes are still the most popular product among investors. As products like this show, rates are extremely competitive and margin over trackers is minimal, yet borrowers get the security over the next couple of years and as well as flexibility should there be a change in strategy after the fix period.”