Alongside a new standard term tracker from 3.88%, the lender now offers a houses in multiple occupation (HMO) tracker from 3.98% and a tracker for expats from 4.38%. It has also brought to market fixed-rate products from 4.2%, including a five-year fix from 4.4%.
Landbay assesses all applicants against an interest coverage ratio of 125% at 5.5%.
New rules taking effect in the beginning of January stipulated all buy-to-let lenders must use an interest rate of 5.5% in their ICR calculations, instead of the pay rate of the mortgage. Additionally, lenders must take into consideration the reduction in landlords’ income as a result of planned cuts to landlord tax relief from April. This consideration has seen most lenders raise their ICR percentages to 145% from 125%.
Landbay said the new products were designed to help landlords transition into the new and more complex lending environment. The lender had already rolled out a range of specialist mortgages aimed solely at professional landlords in October.
Chief lending officer Paul Clampin (pictured) said: “The buy to let market is set to become more complex in 2017, as landlords face an increasingly intricate lending landscape and tighter regulation. 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.”
Landbay is an online peer‐to‐peer lending platform backed by buy-to-let property, which was established in 2013.
The lender prides itself on its strict due diligence standards and “responsible approach” to lending. To date, the firm has lent more than £42m in 241 loans none of which has faced repayment difficulties, it said.