Landbay has introduced a new range of products for professional landlords.
The buy-to-let lender’s new offering includes a standard term tracker from 3.88%, and fixed rate products from 4.2%, including a five-year fix from 4.4% with ICR (Interest Coverage Ratio) based on pay rate.
In addition, Landbay has launched an HMO tracker from 3.98%, expat tracker from 4.38% and increased LTVs to 80% on some products.
All new products use pay rate to make initial ICR calculations, however Landbay runs an underlying affordability calculator to ensure that, as a whole, the application meets a minimum ICR of 125% at 5.5%.
“The buy-to-let market is set to become more complex in 2017, as landlords face an increasingly intricate lending landscape and tighter regulation,” explained Paul Clampin, chief lending officer of Landbay.
“It’s in such a context that borrowers and brokers need solutions that meet their changing needs, so these new products have been designed to do just that for the growing number of professional landlords.”
He added: “As landlords move to navigate this complex environment, so too must lenders ensure that affordability calculations are robust, and in line with the rest of the industry. This is why we have chosen to refine our ICR calculations.”