Buy-to-let lender Landbay has launched 11 new tracker products across its Core, Premier, Small HMO and Product Transfer ranges, while cutting rates on existing tracker products by up to 15bps. The changes come as fixed-rate pricing faces renewed upward pressure.
Among the additions are Premier Like for Like and Premier Like for Like AVM two-year trackers at 75% LTV, both without early repayment charges (ERCs). The former starts from BBR plus 0.34%; the latter from BBR plus 1.34%. Both carry a reduced stress rate of 4.5% or pay rate for landlords refinancing without further borrowing, which affects the affordability calculation at the point of application.
Landbay has also launched a Premier AVM two-year tracker at 75% LTV from BBR plus 0.34% and a Product Transfer Premier two-year tracker from BBR plus 0.44% at the same LTV, again without ERCs.
The lender has extended its tracker offering into the Premier Small HMO range for the first time, with a new two-year tracker at 75% LTV starting from BBR plus 0.64% and a Product Transfer version from BBR plus 0.74%.
Alongside the new products, Landbay has reduced rates across its existing Core two-year tracker range by up to 15bps. The Core two-year tracker with no ERCs now starts from BBR plus 0.29% at 65% LTV and BBR plus 0.49% at 75% LTV. The Core Like for Like two-year tracker at 75% LTV starts from BBR plus 1.54%.
Within the Product Transfer range, Core two-year trackers with no ERCs now start from BBR plus 1.44% at 65% LTV and BBR plus 1.64% at 75% LTV. Rates on the Specialist Small HMO and Small MUFB two-year trackers at 75% LTV have also been cut, with both now starting from BBR plus 1.54% and available without ERCs.
"Recent movements in fixed-rate pricing have again shown why it is important for landlords and their advisers to have access to a broad range of options, rather than assuming a fixed rate will always be the natural choice," said Rob Stanton, sales and distribution director at Landbay (pictured).
"Trackers can provide a useful alternative, particularly for landlords who value flexibility and do not necessarily want to lock into today's fixed-rate pricing for a longer period. By adding new Tracker products and reducing existing product rates, we are giving advisers and their landlord borrower clients more options across our Core, Premier, Small HMO and Product Transfer ranges.
"The reduced stress rate on our Premier Like for Like products is also an important part of this expansion, because affordability can be just as important as headline rate when landlords come to refinance. For eligible borrowers who are not looking to raise additional funds, that 4.5% or pay rate stress test could make a significant difference to the refinancing options available to them.
"Of course, the right choice will depend on the individual landlord and their circumstances, but we want advisers to have a full range of products so they can consider all the different routes available. That is particularly important in a market where the interest-rate outlook remains uncertain and pricing can change quickly."
