The special edition product is subject to ERCs for the first three years of the initial period meaning borrowers can pay off the mortgage with no fees in the fourth or fifth year.
Rates for the product begin at 4.99 per cent with a five per cent fee, 5.19 per cent with a four per cent fee and 5.39 per cent with a three per cent fee. There is also a rate of 5.59 per cent with a two per cent fee and 5.59 per cent with a £1,999 fee.
The mortgage is available at 75 per cent loan to value (LTV) and the interest coverage ratio (ICR) is calculated at payrate.
Rob Stanton (pictured), business development director at Landbay, said: “This new range provides more choice for landlords and is ideal if they are not sure whether to opt for a shorter-term or a longer-term fixed rate, together with the beneficial ICR calculation for five-year loans.
“There are differing opinions as to what will happen with interest rates in the near to medium term. Offering five-year fixed rate loans, with three-year early repayment charges, to our landlord borrowers provides additional flexibility and reassurance in an uncertain market.”
Pepper relaunches Pepper 48
Pepper Money has relaunched its Pepper 48 range that is open to borrowers who have not had a county court judgment (CCJ) of default for 48 months.
The lender has added a limited edition three-year fix product to the range and lower ERCs on its five-year fixes.
Rates in the range begin from 6.75 per cent for a five-year fix and the ERC now starts at three per cent in the first year before reducing to 0.5 per cent by the fourth year of the product term.
The lender has also re-introduced free valuations across its entire range and no arrangement fee options have been resumed on products from Pepper 48 to Pepper 18.
Rates on the three-year fixes start from 7.3 per cent at 70 per cent LTV.
Paul Adams, sales director at Pepper Money, said: “Pepper 48 has traditionally been one of the most popular products in our range of specialist mortgages, providing competitive pricing, clear concise criteria and affordability for customers who have tripped up on credit payments in the past, meaning that they often do not pass the credit score models in the mainstream market
“This relaunch includes low ERCs on five-year fixed rates for customers who want to benefit from the keen pricing of five-year money at the moment, as well as a new three-year fixed rate option for those who want to fix their rate for a shorter period. It also features our lowest current rate for customers with smaller deposits.”
