Buy-to-let investors may be interested to learn that a financial services provider has claimed that fixed-rate mortgage deals are increasing in popularity.
According to figures from Mortgage Trust, 60 per cent of homeowners have now arranged fixed-rate mortgage packages compared to 48 per cent in the middle of last year.
And the financial services provider asserts that the shift towards these mortgages is particularly pronounced in the buy-to-let sector, with 78 per cent of landlords now relying on fixed-rate buy to let mortgages.
John Heron, group director of mortgages at the Paragon group, which owns Mortgage Trust, has commented on what length of home loan is most popular among the buy-to-let community.
"Landlords are mainly opting for shorter term deals, with the most popular fixed-rate terms being two and three years," he said.
"Full-term fixes were by far the least popular."
The growing enthusiasm for fixed-rate mortgages may be a consequence of the recent spate of interest rate hikes.
Since August 2006, the Bank of England's monetary policy committee has opted to raise the base rate by a quarter of a percentage point on four separate occasions.
