Skip to content

Landbay cuts stress tests on buy-to-let remortgages

Buy-to-let lender Landbay has introduced lower stress testing in its popular like-for-like remortgage range.

Rather than the standard calculation of pay rate plus 2%, the range is stress tested at the pay rate.

Rob Stanton, sales and distribution director at Landbay, said: “We’re still seeing high levels of mortgage maturity in the buy-to-let market, with many landlords making the move onto a higher rate than their current deals.

“While we cannot escape stress testing requirements, we can use the tools at our disposal to help alleviate some of the pressures landlords will face when the affordability calculation is applied.

“This gives the landlords who don’t require any capital raising and want a shorter-term product, the opportunity to do so, due to our enhanced affordability criteria.

“As landlords continue to try and navigate the market and predict the future path of interest rates, we fully expect two-year rates to remain incredibly popular.”

For landlords with no changes to their current borrowing requirements, the like-for-like product range offers four different two-year fixed rate options.

The products offer variable fees with rates starting at 5.24% and are available with up to 75% loan-to-value (LTV). The range supports a minimum loan size of £30,000 and a maximum of up to £1.5 million.