Landlords choosing tracker rates

Landlords with buy-to-let mortgages are increasingly choosing tracker rates, new research has found.

A study from Legal & General indicated that variable rates are also rising in popularity for property investors.

The firm's seventh quarterly Mortgage Purchases Index indicated that 30 per cent of buy-to-let mortgages over the past three months were variable rates.

This is an increase of 17 per cent from the second quarter of 2009.

Arranging mortgages is an important consideration for landlords, along with buy-to-let insurance.

Stephen Smith, director of housing at Legal & General, said: "There has been a distinct shift towards tracker and variable rates by landlords.

"However, our data shows that landlords have traditionally preferred variable rates of one sort or another and that the big leap we have seen is from a low starting point.

Legal & General has also warned that low-interest rates could trick people into thinking the housing market is back to normal.

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