Landbay launches 10-year fixed rate mortgage
Landbay is extending its buy-to-let range for intermediaries and their landlord clients with the launch of its first 10-year fixed rate mortgage range.
To start with Landbay is introducing four new products initially available on a semi-exclusive basis with wider distribution later in the year.
The new range is for standard properties and small HMOs up to six bedrooms. These products will also be available with green options which have reduced rates for properties with an EPC rating of A, B or C.
The new range is:
- Standard 10-year fixed rate at 65% LTV is 4.04%
- Standard 10-year fixed rate at 75% LTV is 4.14%
- Small HMO 10-year fixed rate at 75% LTV is 4.34%
- Green (EPC A-C) standard 10-year fixed rate at 75% LTV is 4.04%
These mortgages are available to landlords with at least 24 months experience and a further advance option is available after three years.
Paul Brett, managing director, intermediaries at Landbay, commented: “Now that the Monetary Policy Committee has voted to raise base rate at each of its last five meetings, more borrowers are considering longer-term fixed rates.
“The launch of our 10-year fixed rates are therefore timely and we know there will be demand for them. With the launch of our new broker portal in May we are now able to design new products and bring them to market much more quickly than before.
“As this is our first foray into the 10-year fixed rate market, we have chosen a select group of specialist distributors to assist us in the launch process.”
Rob Jupp, CEO of the Brightstar Group, one of the initial distributors of Landbay’s new range, said: “We are seeing more lenders bringing in 10-year fixed rates, which is good for the market. Landbay’s entry brings extra choice for brokers who are receiving more requests for longer-term fixed rate mortgage products.
“Fixing for 10 years makes sense for landlords who are investing for the long-term knowing their monthly payments will remain the same. But as rents increase over the next few years, so will their rental yield.”