It reduces rates for the second time this month as financial markets begin to settle
Landbay, a specialist buy-to-let lender, has lowered its rates on all of its five-year fixed rate mortgages by up to 0.30%.
Standard five-year products up to 75% LTV now start at 5.99% with a 4% fee. The lender’s 6.19% rate has a fee of 3%, while the 6.39% rate has a fee of 2%.
On standard five-year fixes up to 65% LTV, the product with the 2% fee has a rate of 6.29%, the 3% fee is 6.09%, and a new 4% fee option has been added with a 5.89% rate.
The lender’s green standard five-year fixed rate products, available for properties with an EPC rating of ‘A’ to ‘C’, have been reduced by 0.20% and come with a 2% fee. The 65% LTV product has a rate of 6.19% while the 75% LTV is set at 6.29%.
For landlords with small houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs), comprising of up to six bedrooms/units, there are five-year fixed rates up to 75% LTV. The current product with a 2% fee has been reduced by 0.20% to 6.59%, and a new option that carries a 3% fee has been introduced at 6.39%.
There is also a 0.20% rate reduction to 6.69% on large HMOs/MUFBs, up to 12 bedrooms/units, with a maximum 75% LTV.
Trading companies also benefit from 75% LTV five-year fixed rate reductions with standard property down by 0.30% to 6.49% and small HMO/MUFB rates reduced by 0.20% to 6.69%.
Landbay said its rates in one- and two-year fixed and tracker products remain unchanged.
Read more: Landbay restructures product range.
“For the second time in two weeks, we have been able to reduce our rates as the money markets start to stabilise,” Paul Brett (pictured), managing director of intermediaries at Landbay, commented. “Our variable fee structure gives borrowers options which help them to meet rental requirements within the interest cover ratios, which have to be applied to buy-to-let mortgages.
“A higher upfront fee and a lower interest rate result in a lower rental stress rate, which is beneficial for borrowers. But whichever fee and rate option is taken, the total overall cost will be similar over the initial offer period.”