Landbay cuts buy-to-let rates and widens Green range



Landbay has made rate reductions between 0.14% to 0.29%, signalling that the lender is clamouring for more buy-to-let business.

The lender now offers a 2-year fix at 2.65% to 65% loan-to-value, down from 2.85%. Meanwhile its standard 5-year fix has also been cut to 4.04% to 75% LTV, down from 3.24%.

To give a comparison, the cheapest 65% LTV 2-year fix on the market listed by moneyfacts.co.uk is from NatWest, with a rate of 1.43% and a booking fee of £995.

Paul Brett

Paul Brett, managing director, intermediaries at Landbay, commented: “Despite the Bank of England raising the base rate by 0.15% in December, we are in a position where we are able to lower rates.

“We have access to strong funding lines and our funding partners are keen to support our competitive product position, which we intend to maintain.

“Last year we expanded our product range even further by making significant inroads into helping small portfolio landlords, HMO landlords and those aiming to be environmentally friendly.”

Less than six months after launching its Green range for existing properties – which offers a rate reduction for properties with EPC ratings between A and C – Landbay has now extended this to new builds.

The Green range now includes A, B or C rated properties under one product. Previously there were different rates for EPC A/B ratings and those with a C rating.

The range is seeing a reduction of up to 0.10%. For example, a five-year fix at 75% LTV for a property rated EPC A, B or C is now 2.94%, reduced from 3.14% for an A/B rated property and 3.19% for a C rating.

Also benefiting from lower rates are small HMO/MUFB products, including new build properties, where the 75% LTV products have fallen to 3.34% from 3.59%.

Brett added: “We have been blown away by the interest and take-up of our Green range as more property investors are realising the importance of making their property energy efficient.

“Around one in 10 of our loans are for new build property so it makes perfect sense to extend our Green mortgage to this cohort of landlords.”

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