The products are available with a lower interest cover ratio (ICR) stress test.

If there is no change in borrowing requirements, the stress test will be at pay rate plus one per cent, rather than the standard pay rate plus two per cent.

All five products in the range are available up to 75 per cent loan to value. The rates of the remortgage products range from 4.99 per cent to 5.99 per cent, with fees from £1,499 fixed to four per cent of the loan.

Landbay noted that its reduced ICR stress test also applies to its ‘loyalty’ remortgages, which come with reduced interest rates, for existing Landbay borrowers.

 

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Buy-to-let remortgaging activity to grow

Paul Brett (pictured), managing director of intermediaries at Landbay, noted that there was set to be a lot of remortgage activity within the buy-to-let market this year, with borrowers facing the likelihood of higher rates than their current deal.

He continued: “Applying a stress test is always a requirement but we have tried to soften the blow for buy-to-let landlords whose mortgage is due for renewal.

“It is clear that two-year fixed rates are attractive to some borrowers due to the volatility of the current market. Lowering the rate on the stress test allows borrowers more breathing space when the affordability calculation is applied.”

The lender has previously suggested that landlords feel demonised by the media.