Investors step back as rate and policy risks bite
Investor demand tells a different story. A net 48% of advisers say they are seeing fewer investors seeking mortgage advice, broadly unchanged from April and back in line with conditions last seen in 2022.
The survey cites a mix of factors behind the investor pullback, including tighter debt-to-income settings, changing cashflow maths, and concerns about offshore developments. As Alexander (pictured) puts it, “funds are being made available by the banks, but some new caution may understandably have crept in as we all regard events offshore in particular with some trepidation.”
That wariness is echoed in separate landlord research showing more existing investors looking to sell than buy over the next year, even as most still plan moderate rent increases rather than aggressive hikes.
Against that backdrop of cautious but reasonably well‑buffered borrowers, term selection is now heavily skewed towards the mid-range.
Two-year fixes firmly in the driver’s seat
According to the survey, “Borrowers strongly prefer fixing two years over any other term.” With around 85% of advisers saying two-year rates are the most popular choice, there is minimal interest in one-year fixes or much longer terms.
