Landbay releases new Special Edition five-year fixed rates-with an ERC twist

Specialist buy-to-let lender Landbay has launched a new set of Special Edition five-year fixed rate mortgage products with rates starting at 4.99%.

The new range provides price certainty with combined flexibility as there are only three years of early repayment charges (ERC). This means the borrower can 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 Special Edition range comes with a 75% LTV and a variable interest rate and fee structure:

• Interest rate 4.99%-Fee 5%
• Interest rate 5.19%-Fee 4%
• Interest rate 5.39%-Fee 3%
• Interest rate 5.59%-Fee 2%
• Interest rate 5.59%-Fee £1,999

Rob Stanton, business development director 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.”