Landbay has launched a suite of two-year fixed-rate like-for-like remortgages for landlords, with a lower interest cover ratio stress test.  

The specialist lender says buy-to-let owners who remortgage 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%.   

It says there are five products in the suite with variable fees and rates ranging from 4.99% to 5.99% for standard properties, including mortgages for trading companies.  

The loan-to-value for all these products is 75% gross, including fees.  

Further details include:  

Like-for-like remortgage products – two-year fix – at 75% LTV  

 * 4.99% – 4% fee, maximum loan size £1m  

 * 5.49% – 3% fee, maximum loan size £1m  

 * 5.99% – 2% fee, maximum loan size £1m  

 * 5.99% – £1,499 fixed fee, maximum loan size £74,999  

Trading company like-for-like remortgage products – two-year fix – at 75% LTV  

• 5.69% – 3% fee, maximum loan size £1m  

The lender adds that its reduced interest cover ratio stress test also applies to reduced interest rate loyalty remortgages, that were recently introduced for its like-for-like existing borrowers.  

Landbay managing director, intermediaries Paul Brett says: “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.”  

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