Landbay cuts interest rates while Accord reduces interest coverage ratio rates
Buy-to-let lenders Landbay and Accord Mortgages have both announced adjustments to their buy-to-let offerings, aiming to ease affordability challenges for landlords in the private rental sector.
Landbay revealed cuts of up to 15 basis points (bps) across its fixed rate product range, with the largest reductions applied to its two-year fixed rates, now starting at 3.99% for small houses in multiple occupation (HMOs) and multi-unit freehold block (MUFB) products available at up to 75% loan-to-value (LTV).
The lender’s five-year fixed rates were also reduced by 10bps, with options starting at 4.59% for standard properties and small HMOs and MUFBs, also up to 75% LTV.
“Following the positive news on inflation yesterday morning, we are really pleased to respond straight away with rate reductions across our fixed rate products,” said Rob Stanton (pictured left), sales and distribution director at Landay.
“In recent weeks, the market has seen a lot of movement on rates in reaction to swap rates and ahead of the upcoming Budget. It’s great to be in a position where we can reduce rates and ensure our range is as competitive as possible.”
Meanwhile, Accord Mortgages has lowered its interest coverage ratio rates (ICRR).
For landlords remortgaging on a like-for-like basis, the ICRR has been reduced to 5.5% from 6%, or product rate plus 1% for terms under five years. For terms of five years or more, the ICRR drops to 4.75%, down from 5.5%.
For landlords purchasing properties or remortgaging with capital-raising, the ICRR will be 5.5%, down from 6.5%, or product rate plus 2% for mortgages under five years. For five-year terms or more, the ICRR is reduced to 4.75%. Accord’s interest coverage ratio (ICR) remains unchanged at 125% for basic-rate taxpayers and 145% for higher-rate taxpayers.
“Things have been extremely challenging for landlords in recent times, so, as a buy-to-let lender, we’re constantly reviewing our offering to find new ways to help them as much as we possibly can,” said Nicola Alvarez (pictured right), senior manager for new propositions at Accord Mortgages.
“The private rental sector is crucial to the functioning of our economy, therefore it’s so important that we, as an industry, continue to look for opportunities to support landlords. We hope this change will come as welcome news.”
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