Landbay launches green mortgage range and lowers large HMO and MUFB rates

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  • 22/06/2021
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Landbay launches green mortgage range and lowers large HMO and MUFB rates
Buy-to-let specialist Landbay has launched a green mortgage range with a discount of 0.1 per cent or 0.05 per cent against non-green products to incentivize landlords to adopt more energy efficient properties.

 

An example includes a five-year fixed at 65 per cent loan to value (LTV) for properties with an energy performance certificate (EPC) rating of A/B, which has a rate of 3.15 per cent. This compares to an equivalent non-green product at a rate of 3.25 per cent.

The lender also offers a five-year fixed at 75 per cent LTV for properties with an EPC rating of A/B with a rate of 3.25 per cent. This compares to 3.35 per cent for an equivalent non-green product.

For properties with an EPC rating of C the lender offers a five-year fixed product at 65 per cent LTV with a rate of 3.2 per cent. This is down 0.05 per cent compared to a comparable non-green product.

The provider also offers a five-year fixed at 65 per cent LTV with an EPC rating of C with a rate of 3.3 per cent, which compares to an equivalent non-green product rate of 3.35 per cent.

All the above products are subject to a 1.5 per cent product fee.

All the green rates are available to properties that have been registered for over 24 months with an EPC rating of C or above.

Intermediaries at Landbay’s managing director Paul Brett (pictured) said: “Properties being let by landlords are obliged to have at least an E rated EPC. However, the government has said it wants as many as possible to be upgraded to band C or above by 2030.

“We hope our green mortgage range will go some way to help achieving that goal and incentivize more landlords to consider adding energy efficient properties to their portfolio.”

 

HMO and MUFB rates lowered by 0.2 per cent:

Landbay has also cut a range of its houses of multiple occupancy (HMO) and multiunit freehold block (MUFB) products by up to 0.2 per cent.

The lender defines large HMOs as houses with seven to 12 bedrooms, and large MUFBs as having seven to 12 units.

The rate for its large HMO two-year fixed product at 70 per cent LTV has been cut by 0.16 per cent to 3.69 per cent, whilst its equivalent product at 75 per cent LTV has been reduced to 3.79 per cent.

On the five-year fixed large HMO products at 70 per cent LTV has fallen from 4.09 per cent to 3.89 per cent, and for 75 per cent LTV its rate has decreased from 4.19 per cent to 3.99 per cent.

The rate for its large MUFB two-year fixed at 70 per cent LTV has been cut by 0.16 per cent to 3.69 per cent, and its equivalent at 75 per cent LTV has been reduced by 0.2 per cent to 3.79 per cent.

Both its five-year fixed for large MUFB at 70 per cent LTV and 75 per cent LTV have been decreased by 0.2 per cent to 3.89 per cent and 3.99 per cent respectively.

Intermediaries at Landbay’s managing director Paul Brett said: “Demand for HMO and MUFB finance has been picking up over the past couple of years as experienced landlords build up and diversify their portfolios.

“These types of property are proving more attractive to landlords as they generate a higher yield than a single dwelling. This is being fuelled by high demand for shared housing and rented property.”

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