The products offer variable fees with rates starting at 5.24%
Buy-to-let lender Landbay has announced improvements to its like-for-like remortgage range, featuring new, less stringent stress testing and several rate reductions.
The updates include a revised stress testing method, now calculated at the pay rate, an adjustment from the standard pay rate plus 2%, enhancing affordability for landlords who do not seek to increase their current borrowing.
The updated like-for-like product suite offers four two-year fixed rate options, starting at rates of 5.24%, with variable fees and available for loans up to 75% loan-to-value (LTV). These products are designed for loans ranging from a minimum of £30,000 to a maximum of £1.5 million.
Following a recent decrease in swap rates, Landbay has reduced interest rates by 0.1% across most of its range, including its five-year fixed rates, now starting at 4.74% at 75% LTV.
“We’re still seeing high levels of mortgage maturity in the buy-to-let market, with many landlords making the move onto a higher rate than their current deals,” said Rob Stanton (pictured), sales and distribution director at Landbay.
“While we cannot escape stress testing requirements, we can use the tools at our disposal to help alleviate some of the pressures landlords will face when the affordability calculation is applied.
“This gives the landlords who don’t require any capital raising and want a shorter-term product, the opportunity to do so, due to our enhanced affordability criteria. As landlords continue to try and navigate the market and predict the future path of interest rates, we fully expect two-year rates to remain incredibly popular.”
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