Landbay, a specialist buy-to-let lender, has announced the launch of a new set of Special Edition 5-year fixed rate mortgage products, with rates starting at 4.99%.
The range provides borrowers with both price certainty and flexibility, as there are only three years of early repayment charges (ERC), allowing borrowers to redeem the mortgage in years four and five without penalty.
This new offering is advantageous for stress testing purposes, as the interest cover ratio (ICR) on 5-year fixes is calculated at payrate.
The 5-year Special Edition range comes with a 75% loan-to-value (LTV) and a variable interest rate and fee structure.
Options include an interest rate of 4.99% with a 5% fee, 5.19% with a 4% fee, 5.39% with a 3% fee, 5.59% with a 2% fee, and 5.59% with a £1,999 fee.
Rob Stanton (pictured), business development Ddirector at Landbay, commented on the new range: “This new range provides more choice for landlords and is ideal if they are not sure whether to opt for a shorter-term or a longer-term fixed rate, together with the beneficial ICR calculation for 5-year loans.”
Stanton added: “There are differing opinions as to what will happen with interest rates in the near to medium term. Offering five-year fixed rate loans, with three-year early repayment charges, to our landlord borrowers provides additional flexibility and reassurance in an uncertain market.”
The launch of these Special Edition products demonstrates Landbay’s commitment to providing innovative and flexible financial solutions for landlords in the buy-to-let market.
