Landbay has announced it will reduce the rates on two-year fixed-rate mortgages.

This marks the lender’s second interest rate reduction of 2023, with its two-year fixed rate range falling by up to 0.30% for standard, small houses of multiple occupancies (HMO) and multi-unit freehold buildings (MUFB) plus trading companies.

Highlights of two-year fixed rate products at 75% LTV with a 3% product fee include:

• Standard mortgage – 5.09%, reduced by 0.20% • Small HMO/MUFB – 5.29%, lowered by 0.10% • Trading company standard product – 5.39%, down from 0.30%

In addition, Landbay says it has lowered its income cover ratio (ICR) requirements for basic tax rate borrowers to 125% from 140%.

This applies to standard properties as well as HMOs and MUFBs.

Landbay managing director of intermediaries Paul Brett says: “Less than two weeks into the new year and we are pleased to announce our second rate reduction for 2023, which is great news for brokers and their landlord clients.”

“We have also dropped the ICR calculation for basic rate taxpayers, bringing it in line with the wider market. This will help smaller landlords to borrow more than they previously could.”