Landbay launches new five-year range with three-year ERCs

Landbay has launched a new range of limited edition five-year fixed rate buy-to-let mortgage products starting at 4.99%.

The new range offers only three years of early repayment charges (ERC), allowing borrowers to redeem the mortgage in years four and five if they wish with no penalty.

It is also beneficial for stress testing purposes as the interest cover ratio (ICR) on five-year fixes is calculated at payrate.

The new five-year rates are available at 75% LTV and start from 4.99% with a 5% fee, 5.19% with a 4% fee, 5.39% with a 3% fee, and 5.59% with a 2% or £1,999 fee.

Rob Stanton, business development director at Landbay, said: “This new range provides more choice for landlords and is ideal if they are not sure whether to opt for a shorter-term or a longer-term fixed rate, together with the beneficial ICR calculation for five-year loans.

“There are differing opinions as to what will happen with interest rates in the near to medium term. Offering five-year fixed rate loans, with three-year early repayment charges, to our landlord borrowers provides additional flexibility and reassurance in an uncertain market.”