Landbay cuts stress testing requirements on like-for-like remortgage range

13 May 2024

Buy-to-let lender Landbay has enhanced its popular like-for-like remortgage range with new lower stress testing, alongside a raft of new rate reductions.

For landlords with no changes to their current borrowing requirements, the like-for-like product range offers four different two-year fixed rate options. Rather than the standard calculation of pay rate plus 2%, this revised range is stress tested at pay rate, providing enhanced affordability.

The products offer variable fees with rates starting at 5.24% and are available with up to 75% loan-to-value (LTV). The range supports a minimum loan size of £30,000 and a maximum of up to £1.5 million.

Following the recent drop in swap rates, Landbay has reacted quickly, reducing rates by 0.10% across the majority of its product range, including its five-year fixed rates, which now start at 4.74% at 75% LTV.

All products are available for intermediaries to view and compare using the Landbay’s buy-to-let affordability calculator.

Like-for-like standard remortgage products – 2 year fixed rate:

• 5.89% at 75% LTV with 3% fee (max loan size £1m)
• 5.39% at 75% LTV with 4% fee (max loan size £1m)
• 5.74% at 65% LTV with 3% fee (max loan size £1.5m)
• 5.24% at 65% LTV with 4% fee (max loan size £1.5m)

Rob Stanton, sales and distribution director at Landbay, said: “We’re still seeing high levels of mortgage maturity in the buy-to-let market, with many landlords making the move onto a higher rate than their current deals. While we cannot escape stress testing requirements, we can use the tools at our disposal to help alleviate some of the pressures landlords will face when the affordability calculation is applied.

“This gives the landlords who don’t require any capital raising and want a shorter-term product, the opportunity to do so, due to our enhanced affordability criteria. As landlords continue to try and navigate the market and predict the future path of interest rates, we fully expect two-year rates to remain incredibly popular.”