Some buy-to-let borrowers, particularly those remortgaging, are unable to meet the interest cover ratio (ICR) requirements stipulated by the Prudential Regulatory Authority, the lender said.
Landbay’s range comes with a variety of product fee options, so that the lender can offer lower interest rates.
The range features three standard five-year fixed rate products up to 75 per cent loan to value (LTV) starting at 6.49 per cent, fees start at two per cent and go up to four per cent.
Catering for small houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFB) of up to six bedrooms or units, Landbay’s five-year fixed rate starts at 6.99 per cent.
The deal for large HMOs/MUFBs, for up to 12 bedrooms or units, start at 7.09 per cent.
This range will sit alongside Landbay’s existing one and two-year fixed rate products and tracker mortgages.
Paul Brett (pictured), managing director, intermediaries at Landbay, said: “The mortgage industry is having to get used to a new, higher interest rate environment, moving from a 13-year era of historically low rates.
“Rental property is a vital part of the housing mix in the UK, we will continue to work hard to find solutions that mean people can still borrow for this reason.
“Although fees are now higher it means that we can keep rates lower and landlord borrowers are in a better position to meet ICR requirements. If we keep fees lower and raise interest rates, monthly payments would work out similar but in many cases landlords would not meet the ICR unless they increase their tenants’ rent.”
“Our new mortgage products are very competitive featuring high up on sourcing systems and we continue to look at ways to bring innovative products to market.”
