Landbay has announced a reduction in rates across its core and specialist buy-to-let mortgage ranges, with cuts of up to 20 basis points. This move is significant for landlords and investors, as it provides more competitive options in the current market.
TL;DR: Landbay has cut rates by up to 20bps on buy-to-let mortgages; this affects both standard and specialist products, making borrowing more affordable for landlords.
What Rates Have Been Reduced for Buy-to-Let Mortgages?
In Landbay’s core range, five-year fixed standard and automated valuation model (AVM) products at 75% loan-to-value (LTV) have seen a reduction of 20bps, now starting from 4.74%. Similarly, two-year fixed products in this range have also been cut by 20bps, with rates beginning at 3.99%. For the specialist range, five-year fixed HMO (House in Multiple Occupation) and MUFB (Multi-Unit Freehold Block) products at 75% LTV have been reduced by 10bps, now available from 5.44%. Two-year fixed specialist products are also reduced by 10bps, starting at 4.34%.
How Do These Changes Impact Landlords?
The recent rate cuts are particularly beneficial for landlords looking to finance new purchases or remortgage existing properties. With lower rates available, landlords can potentially reduce their monthly repayments, improving cash flow. This is especially relevant for those managing multiple properties, as Landbay’s Premier range, which covers standard and HMO products for landlords with up to 15 mortgaged properties, has also seen reductions earlier this month.
What Should Borrowers Watch Next Regarding Buy-to-Let Mortgages?
Landlords and brokers should keep an eye on further rate movements in the buy-to-let mortgage market. As competition among lenders increases, additional rate cuts may follow. It’s advisable for potential borrowers to regularly check buy-to-let mortgage rates and consider their options carefully, especially if they are looking to lock in a fixed rate.
Frequently asked questions
What types of buy-to-let mortgages does Landbay offer?
Landbay offers both core and specialist buy-to-let mortgage products, including standard, HMO, and MUFB options, catering to various landlord needs.
How can I calculate my buy-to-let mortgage affordability?
Landlords can use the BTL affordability calculator to assess their borrowing capacity based on rental income and other financial factors.