News & blogs

There’s been so much going on in the market lately, it’s difficult to know whether you’re coming or going.

With the UK economy remaining volatile due to soaring global energy prices, fluctuating interest rate expectations and inflation continuing to remain sticky, it feels as though you’re standing on shifting sands. And if you’re a landlord, when you throw in the Renters’ Right Act, rising operational costs and tighter tax regulations, the uncertainty must feel particularly acute.

In a market that’s constantly on the move, it shouldn’t come as a surprise if you’re approached by clients looking to insulate themselves against future shocks by taking out a 5 year fixed rate mortgage.

So, at a time when certainty and value really matter to landlords, you might be interested to know that here at ModaMortgages we’ve recently cut prices across our limited edition 5 year fixed rate range by 20bps.

The reduction means our rates now start from 4.94% for landlords looking to purchase single dwelling properties, or from 5.04% for investors looking to explore opportunities offered by HMO and MUFB properties with up to six bedrooms or units.

Products are available to individual and limited company landlords up to 80% LTV with a choice of fee options to cater for different borrower circumstances. Not only that, we stress test at the product’s pay rate for easier affordability. What’s more, we offer free valuations across our entire buy to let range, which is really handy for landlords looking to manage their outgoings.

One of the biggest advantages of a longer-term product is the peace of mind it can give landlords with their monthly payments. For the full five years, their interest rate will stay exactly the same. No surprises, no sudden hikes and no worrying about what the Bank of England might do next.

That stability is invaluable. It means they can plan their cashflow with confidence, knowing their mortgage costs won’t change until the deal ends. Whether they’re managing one property or a whole portfolio, that predictability can make day‑to‑day planning far easier.

Another benefit is that 5 year fixed rate products typically come with favourable stress test calculations, with lenders often applying lower stress rates to 5 year products compared with 2 year deals.

This can make a real difference, especially when the rental income is tight or if your client is trying to maximise their borrowing. For many landlords, choosing a 5 year fixed rate can be the difference between a deal working or not working.

Finally, remortgaging every couple of years can be expensive and time-consuming. The fees can soon mount up and that’s before you factor in the admin and the time it takes to find a new deal.

With a 5 year fixed rate product, you simply don’t have to go through that process as often. Your clients can lock in their rate, safe in the knowledge what their payments are going to be, and get on with running their portfolio. Over time, that can save them both money and stress.

To find out more, take a look at our products. And don’t forget, if you’ve got a question and would prefer to speak with a member of our team, you can always contact your business development manager or call us on 01978 803333.