Products, rate cuts and stress rate changes revealed
Buy-to-let lender Landbay has expanded its tracker range with the launch of 11 new products across its Core, Premier, Small HMO and Product Transfer ranges and made cuts of up to 15 basis points on some of its existing tracker products.
The new products include Premier Like for Like and Premier Like for Like AVM two-year trackers at 75% LTV, with rates starting from Bank Base Rate (BBR) plus 0.34% and BBR plus 1.34% respectively, and no early repayment charges (ERCs).
The company says both new products also benefit from a reduced stress rate of 4.5% or pay rate, which it says can provide a significant affordability benefit for landlord borrowers refinancing without any further borrowing.
Landbay has also launched a Premier AVM two-year tracker at 75% LTV, starting from BBR plus 0.34%, alongside a new Product Transfer Premier two-year tracker starting from BBR plus 0.44%, also at 75% LTV, with both products available without ERCs.
Changes in its tracker offering within its Premier Small HMO range include a new two-year tracker at 75% LTV with rates starting from BBR plus 0.64%, alongside a Product Transfer version starting from BBR plus 0.74%.
Rate cuts
Meanwhile, the company has cut rates by up to 15 bps across its existing Core two-year tracker products at 65% and 75% LTV, including Product Transfer options, as well as its Specialist Small HMO and Small MUFB two-year trackers at 75% LTV.
Landbay’s Core two-year tracker with no ERCs now starts from BBR plus 0.29% at 65% LTV, and BBR plus 0.49% at 75% LTV. Its Core Like for Like two-year tracker at 75% LTV starts from BBR plus 1.54%.
Within its Product Transfer range, Core two-year trackers with no ERCs now start from BBR plus 1.44% at 65% LTV and BBR plus 1.64% at 75% LTV. Rates on Landbay’s Specialist Small HMO and Small MUFB two-year trackers at 75% LTV have also been reduced, with both now starting from BBR plus 1.54%, again available without ERCs.
Rob Stanton, sales and distribution director at Landbay, said: “Recent movements in fixed-rate pricing have again shown why it is important for landlords and their advisers to have access to a broad range of options, rather than assuming a fixed rate will always be the natural choice. Trackers can provide a useful alternative, particularly for landlords who value flexibility and do not necessarily want to lock into today’s fixed-rate pricing for a longer period.”
But he said the changes to the stress rate were also significant. “The reduced stress rate on our Premier Like for Like products is also an important part of this expansion, because affordability can be just as important as headline rate when landlords come to refinance.”
