Landbay launches remortgage range to prepare for increased demand

The products are five-year fixed rates between 65 and 75 per cent loan to value priced between 15 and 25 basis points lower than its core range.

This includes a five-year fixed rate at 65 per cent LTV priced at 2.95 per cent and a five-year fixed rate up to 75 per cent LTV at 3.09 per cent. The deals are 19 and 15 basis points lower than its core range equivalents.

The standard 75 per cent LTV also has an option with free valuation.

The range also includes a five-year fixed rate for small houses in multiple occupation (HMO) at 75 per cent LTV with a rate of 3.34 per cent. There is also a small multi-unit freehold blocks (MUFB) product with the same LTV and rate.

Both options are 25 basis points lowers than its core range equivalents.

Paul Brett (pictured), managing director for intermediaries at Landbay, said : “We are targeting the mid-range of loans between £250,000 and £500,000 as there will be a large amount of remortgaging over the next few months in this price bracket. In particular, we expect to see an increase in demand for remortgaging of HMOs and MUFBs for loans of this size.”

He added: “Five-year fixed rates are very popular with buy-to-let borrowers, especially portfolio landlords, as the affordability stress test that is applied is the pay rate. This starts at 2.95 per cent in our new remortgage range – instead of having to apply a stress test of 5.5 per cent for two or three-year fixed rate mortgages, as prescribed by the Prudential Regulatory Authority.”