Mansfield Building Society has launched a new five-year fixed rate mortgage for landlords with a pay rate of 3.39%.

It is available at up to 75% LTV and charges a £199 application fee and £1,300 completion fee.

The lender says its new product will be of special interest to landlords looking to invest in areas where house price inflation is accelerating beyond rental income.

“By reducing the stress rate on our five-year fixed rate product, we are able to support those landlords that have maintained their mortgage repayments throughout the pandemic but have seen a reduction in rental income by offering full or partial rent reductions to their tenants,” adds Mansfield head of mortgage sales Andy Alvarez.

He continues: “We also wanted to make it easier for those wanting to take the first step into becoming a landlord and help those looking to grow their existing portfolio – landlords with up to 15 properties are also eligible for this product.

“We believe this product is likely to prove popular, so my advice to brokers is to get in touch if you have cases that have failed to meet the traditional calculations of 5% or 5.5%.”