0:05 AM, 14th May 2024, About 2 months ago
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Landbay has streamlined its like-for-like remortgage products for buy to let landlords by simplifying its affordability checks and offering lower interest rates.
Landlords looking to remortgage without increasing their borrowing amount can benefit from the lender’s revised stress test criteria.
Instead of the usual calculation that factors in a 2% interest rate hike on top of their current mortgage rate, Landbay will now assess affordability based solely on the borrower’s current salary.
This change is designed to make remortgaging more accessible for landlords, particularly amid a climate of rising interest rates.
The lender’s sales and distribution director, Rob Stanton, said: “We’re still seeing high levels of mortgage maturity in the buy to let market, with many landlords making the move onto a higher rate than their current deals.
“While we cannot escape stress testing requirements, we can use the tools at our disposal to help alleviate some of the pressures landlords will face when the affordability calculation is applied.
“This gives the landlords who don’t require any capital raising and want a shorter-term product, the opportunity to do so, due to our enhanced affordability criteria.”
He added: “As landlords continue to try and navigate the market and predict the future path of interest rates, we fully expect two-year rates to remain incredibly popular.”
Landbay has also reduced rates across its product range, with fixed rates starting from 5.24% for a two-year term at 65% loan-to-value (LTV).
Meanwhile, Buy-to-Let by Foundation has introduced new products specifically designed for short-term lets and holiday lets.
These additions come with fee reductions across their existing product range.
Landlords can now access fee-assisted, two and five-year fixed-rate deals for short-term lets, with rates starting from 6.79% and a 1.25% fee. The maximum loan-to-value (LTV) for these products is 75%.
Also, a new two-year fixed-rate holiday let product is available with a rate of 6.99% and a 2% fee, with a maximum LTV of 70%.
Tom Jacob, the lender’s director of product and marketing, said: “We continue to review our product and criteria right across the buy to let range, and as a result of this, we’re able to launch these new, specific short-term and holiday let products, as well as cut fees across a number of other product options.
“Landlords continue to look at the ways and means by which they can diversify their portfolio, and both short-term and holiday let options are growing in popularity, not least because of the potential for greater rental yield levels on these types of properties.”
He added: “At the same time, we have been able to cut fees across a number of products, saving money upfront for landlords and over the term of the mortgage, given that large numbers of borrowers add the fees to the loan.”
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