The products offer only three years of early repayment charges
Specialist buy-to-let lender Landbay has launched a new set of special edition five-year fixed rate mortgage products with rates starting at 4.99%.
The lender said the new range provides price certainty with combined flexibility as there are only three years of early repayment charges, which means that the borrower can redeem the mortgage in years four and five, if they wish, with no penalty.
Landbay said it is also beneficial for stress testing purposes as the interest cover ratio (ICR) on five-year fixes is calculated at payrate.
The new five-year special edition range comes with a 75% loan-to-value (LTV) and a variable interest rate and fee structure. The one with 4.99% interest rate has a 5% fee, the 5.19% product has a 4% fee, while the one with a 5.39% rate has a 3% fee. The product with a 5.59% interest rate can be availed with either a 2% fee or a £1,999 fee.
At the beginning of the year, Landbay relaunched its special edition five-year fixed rate buy-to-let mortgage range, also with a choice of interest rates and fees.
“This new range provides more choice for landlords and is ideal if they are not sure whether to opt for a shorter-term or a longer-term fixed rate, together with the beneficial ICR calculation for five-year loans,” Rob Stanton (pictured), business development director at Landbay, said.
“There are differing opinions as to what will happen with interest rates in the near to medium term. Offering five-year fixed rate loans, with three-year early repayment charges, to our landlord borrowers provides additional flexibility and reassurance in an uncertain market.”
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