Landbay, a lending platform specialising in buy-to-let mortgages have announced a noteworthy reduction in their mortgage rates, signaling a potentially advantageous shift for property investors.
Landbay has slashed rates across various mortgage products. The adjustments are as follows:
- Two-Year Fixed Rates: Beginning at a promising 4.39%, these rates now come with a 6% product fee, marking a reduction of up to 0.30%.
- Small HMOs and MUFBs Rates: Both two-year and five-year fixed rates for small Houses in Multiple Occupation (HMOs) and Multi-Unit Freehold Blocks (MUFBs) see a decline by up to 0.30%.
- Incentives for First-Time Landlords: Recognizing the challenges new landlords face, Landbay has also reduced rates for first-time landlord HMOs and trading company products.
- Five-Year Standard Fixed Rates: More established property investors can benefit from the standard five-year fixed rates now starting at 4.79%, which is a decrease of 0.1%.
The Driving Force Behind the Reductions
Rob Stanton, Landbay’s Business Development Director, attributes these rate cuts to the falling swap rates in the money markets. He expresses optimism regarding the Bank of England maintaining the base rate, which would contribute to the stability of swap rates and potentially lead to further rate cuts by Landbay in the near future.
Enhanced Affordability for Investors
Landbay’s product offerings are designed with varying fees to boost affordability. Their unique remortgage features include:
- Like for Like Remortgage Stress Test: Unlike the standard pay rate plus 2%, Landbay’s remortgage features an Interest Coverage Ratio (ICR) stress test at the pay rate plus only 1%.
Product Highlights
- Standard Five-Year Fixed Rate: With a 75% Loan to Value (LTV), rates start from a competitive 5.05%.
- Remortgage Two-Year Fixed Rate: For a 70% LTV, rates initiate at 4.59%.
- Small HMO/MUFB Two-Year Fixed Rate: At 75% LTV, investors can find rates starting from 4.69%.
- Small HMO/MUFB Five-Year Fixed Rate: For the same LTV, the rates start at 5.59%.