The recent rise in mortgage rates has left some buy-to-let borrowers, particularly those remortgaging, unable to meet ICR requirements.
Landbay has launched a new range of five-year fixed rate buy-to-let products with variable fee options.
In order to help landlords to meet ICR requirements, Landbay’s new range comes with a variety of product fee options, which enables the lender to offer lower interest rates.
The new range consists of three standard five-year fixed rate products up to 75% LTV starting at 6.49%.
For small HMOs/MUFBs of up to six beds/units, Landbay’s five-year fixed rate starts at 6.99%, while large HMOs/MUFBs, for up to 12 beds/units, start at 7.09%.
The new range will sit alongside Landbay’s existing one and two fixed-rate products and tracker mortgages.
Paul Brett, managing director of intermediaries at Landbay, commented: “The mortgage industry is having to get used to a new, higher interest rate environment, moving from a 13-year era of historically low rates. Rental property is a vital part of the housing mix in the UK, we will continue to work hard to find solutions that mean people can still borrow for this reason.
“Although fees are now higher it means that we can keep rates lower and landlord borrowers are in a better position to meet ICR requirements. If we keep fees lower and raise interest rates, monthly payments would work out similar but in many cases landlords would not meet the ICR unless they increase their tenants’ rent.
“Our new mortgage products are very competitive featuring high up on sourcing systems and we continue to look at ways to bring innovative products to market.”