Landbay lowers rates on two-year fixes and reduces ICR

Buy-to-let specialist lender Landbay is lowering the rates on two-year fixed rate mortgages and reducing its income cover ratio (ICR) requirements for basic tax rate borrowers.

This is the second interest rate reduction of 2023 for Landbay, with its two-year fixed rate range falling by up to 0.30% for standard, small HMOs and MUFBs plus trading companies.

Example of two-year fixed rate products at 75% LTV with 3% product fee:

• Standard mortgage – 5.09% (reduced by 0.20%)
• Small HMO/MUFB – 5.29% (reduced by 0.10%)
• Trading company standard product – 5.39% (reduced by 0.30%)

In addition, Landbay is bringing its ICR requirements in line with the wider market for basic rate taxpayers to 125% from 140%. This applies to standard properties as well as HMOs and MUFBs.

Paul Brett, managing director, intermediaries at Landbay, commented: “Less than two weeks into the new year and we are pleased to announce our second rate reduction for 2023, which is great news for brokers and their landlord clients.

“We have also dropped the ICR calculation for basic rate taxpayers, bringing it in line with the wider market. This will help smaller landlords to borrow more than they previously could.”