Landbay has introduced a suite of two-year fixed-rate like-for-like remortgage products with a lower ICR stress test.
Landlords remortgaging with no change to their borrowing requirements will be stress tested at pay rate plus 1% — instead of the standard calculation of pay rate plus 2% — helping with affordability challenges.
There are five products with variable fees and rates starting at 4.99% up to 5.99% for standard properties including mortgages for trading companies.
The LTV for all these products is 75% gross (including fees).
For trading company like-for-like remortgage products, the two-year fixed rate is 5.69% with a 3% fee and maximum loan size of £1m.
The reduced ICR stress test also applies to the lender’s reduced interest rate and loyalty remortgages.
Paul Brett, managing director for intermediaries at Landbay, said: “There is a lot of remortgage activity this year and we are acutely aware that borrowers will have to take higher rates than their current deal.
“Applying a stress test is always a requirement but we have tried to soften the blow for BTL landlords whose mortgage is due for renewal.
“It is clear that two-year fixed rates are attractive to some borrowers due to the volatility of the current market.
“Lowering the rate on the stress test allows borrowers more breathing space when the affordability calculation is applied.”
