Purchase-to-let mortgage lender Landbay has launched a brand new set of ‘particular version’ five-year fastened price mortgage merchandise, with charges beginning at 4.99 per cent.
The brand new vary goals to supply value certainty with flexibility as there are solely three years of early reimbursement prices (ERC).
This implies the borrower can redeem the mortgage in years 4 and 5 if they need with no penalty.
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Landbay, which pulled out of the peer-to-peer lending market in 2019, stated the mortgages are additionally useful for stress testing functions, because the curiosity cowl ratio (ICR) on five-year fixes is calculated at payrate.
The brand new five-year particular version vary comes with a 75 per cent loan-to-value and a variable rate of interest and charge construction, beginning at a charge of 5 per cent for the 4.99 per cent rate of interest, and regularly reducing to 2 per cent for the 5.59 per cent price.
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“This new vary gives extra alternative for landlords and is right if they aren’t positive whether or not to go for a shorter-term or a longer-term fastened price, along with the useful ICR calculation for five-year loans,” stated Landbay enterprise improvement director Rob Stanton.
“There are differing opinions as to what’s going to occur with rates of interest within the close to to medium time period. Providing five-year fastened price loans, with three-year early reimbursement prices, to our landlord debtors gives further flexibility and reassurance in an unsure market.”
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