Landbay has launched a new range of five-year fixed rate remortgage products for BTL loans between £250,000 and £500,000.

These loans are available at either 65 per cent or 75 per cent LTV with a free valuation on the standard remortgage product. This range includes five-year fixes for houses in multiple occupancy and multi-unit freehold blocks up to six bedrooms or units.

This new range has rates that are between 15 and 25 points lower than Landbay’s core range. The biggest reductions are on the small HMO and small MUFB products.

The standard five year fix is priced at 2.95 per cent (at 65 per cent LTV), with the standard five-year fix at 75 per cent LTV priced at 3.24 per cent. Both the small HMO and small MUFB five year fix at priced at 3.34 per cent (at 75 per cent LTV). This is 25 basis points below equivalent deals in the core range.

Landbay managing director Paul Brett says: “We are targeting this mid-range of loans as there will be a large amount of remortgaging over the next few months in this price bracket. We expect to see an increase in demand for remortgaging of HMOs and MUFBs.

“Five-year fixed rates are popular with BTL borrowers, especially portfolio landlords as the affordability stress test that is applied is the pay rate. This starts at 2.95 per cent in our new remortgage range, instead of having to apply a stress test of 5.5 per cent for two- or three-year fixed rate mortgages.”