Landbay cuts two-year fixed rates and reduces ICR

Landbay is lowering the rates on two-year fixed rate buy-to-let 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.

Two-year fixed rate products at 75% LTV with a 3% product fee now start at 5.09% for standard mortgages, 5.29% for small HMOs/MUFBs, and 5.39% for trading company standard products.

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 of 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.”