In a significant move for the industry, specialist buy-to-let lender, Landbay, has announced noteworthy reductions in their two-year fixed rates. These rates have seen a substantial decrease, by up to 0.50%, beginning now at an appealing 4.19%.

To dive deeper into the specifics:

• The most notable product, pitched at 4.19%, offers a 55% loan-to-value (LTV) ratio and comes attached with a 7% fee.
• For those looking for a higher LTV, there’s another offering at 5.09% that provides up to 75% LTV with a 6% fee.

Landbay emphasises that these mortgage products are tailored for landlords aiming to remortgage without alterations to their borrowing prerequisites.

A Fresh Approach to Stress Testing

An interesting departure from the norm is Landbay’s approach to stress testing these products. Typically, mortgage products undergo a stress test at a calculation of pay rate plus 2%. However, Landbay’s offerings are assessed at the pay rate plus just 1%. This presents a more lenient approach, which may appeal to certain landlords and investors.

Insights from Landbay’s Leadership

Rob Stanton, Business Development Director at Landbay, sheds light on the strategy behind these changes. He noted that recent surveys indicate a rise in the popularity of shorter-term fixed rates. Landlords, it seems, are re-evaluating their options in the current market scenario.

Stanton expressed his enthusiasm, stating, “We’re answering this demand by not only introducing more two-year products but by also implementing significant rate reductions across our range. This includes those considering a like-for-like remortgage.”

He further highlighted the advantage of Landbay’s in-house technology, which provides them with the agility to adapt promptly to market fluctuations. “Our primary objective,” Stanton said, “is to arm our broker partners with a broader array of tools to cater to their clients’ needs.”

On the topic of remortgaging, Stanton expressed confidence that landlords and investors would welcome the news of these rate reductions, coupled with the more relaxed stress test approach.

A Glimpse at Other Offerings

Landbay’s suite of products also boasts other attractive features:

• A Small HMO 2 Year Fixed offering at 75% LTV with an interest rate of 5.19% and a 6% fee, a decrease from the previous 5.39%.
• A similar rate and fee structure for the Small MUFB 2 Year Fixed option.
• A competitive Like for Like Remortgage Standard 2 Year Fixed option at 75% LTV (Gross) available at 4.49% with a 7% fee, marking a drop from the earlier 4.79%.