Buy-to-let-lender Landbay has introduced a new range of five-year fixed rate remortgage products for loans between £250,000 and £500,000.
It has released five Limited Edition products as demand in November usually increase..
LTVs are either 65% or 75% with a free valuation option on the standard remortgage products. In addition, the new range caters for Houses in Multiple Occupation (HMO) and Multi-Unit Freehold Blocks (MUFB) of up to 6 bedrooms or units.
This new range has 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.
The new suite of remortgage products is as follows:
- Standard five-year fix at 65% LTV at 2.95%
- Standard five-year 75% LTV at 3.09%
- Standard five-year 75% LTV at 3.09% + free valuation
- Small HMO five-year 75% LTV at 3.34%
- Small MUFB five-year 75% LTV at 3.34%
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 buy-to-let 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 two or three-year fixed rate mortgages, as prescribed by the Prudential Regulatory Authority.”
