Paul Brett, managing director of intermediaries at Landbay, said: “We are targeting the mid-range of loans between £250,000 and £500,000 as there will be a large amount of remortgaging over the next few months in this price bracket."
Landbay has launched a new range of 5-year fixed rate buy-to-let (BTL) remortgage products for loans between £250,000 and £500,000.
Loan-to-values (LTVs) are either 65% or 75% with a free valuation option on the standard remortgage products and the range caters for Houses in Multiple Occupation (HMO) and Multi-Unit Freehold Blocks (MUFB) of up to six bedrooms or units.
The new products have lower rates than Landbay’s core products of between 15 and 25 basis points (bps). It will sit alongside the core range which is for loans starting from £30,000 up to £1.5m.
Paul Brett, managing director of intermediaries at Landbay, said: “We are targeting the mid-range of loans between £250,000 and £500,000 as there will be a large amount of remortgaging over the next few months in this price bracket.
"In particular, we expect to see an increase in demand for remortgaging of HMOs and MUFBs for loans of this size.
“Five-year fixed rates are very popular with BTL borrowers, especially portfolio landlords, as the affordability stress test that is applied is the pay rate.
"This starts at 2.95% in our new remortgage range – instead of having to apply a stress test of 5.5% for 2- or 3-year fixed rate mortgages, as prescribed by the Prudential Regulatory Authority.”
