The lowered stress testing will be available to BTL landlord borrowers who are making no changes to their current borrowing amount and are in need of two-year fixed rate products. Landbay has amended this to stress test borrowers at pay rate instead of pay rate plus 2%.

The lender said this would improve affordability for borrowers.

There are different fee options across its like-for-like remortgage offering, and rates start at 5.24%, available up to 75% loan to value (LTV). Borrowing amounts range from £30,000 to £1.5m.

This includes a two-year fixed option at 65% LTV with a 4% fee, which has a rate of 5.24%, and the corresponding deal with a 3% fee, which has a rate of 5.74%.

At 75% LTV, there is a two-year fixed like-for-like remortgage with a 4% fee and a rate of 5.39%. The alternative with a 3% fee is priced at 5.89%.

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Landbay has also cut rates across its product range by up to 0.1%, with five-year fixed rates now starting at 4.74% at 75% LTV.

Rob Stanton (pictured), sales and distribution director at Landbay, 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. 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.”

Earlier this year, Landbay broadened its BTL mortgage offering with the addition of products at 80% LTV for standard and house in multiple occupation (HMO) properties. This also included reductions to pricing.