Landbay has launched a range of five-year fixed-rate buy-to-let products with variable fees, which it says will help landlords manage “challenging rental calculations”.  

The BTL platform says the range consists of three standard five-year fixed-rate loans of up to 75% loan to value, starting at 6.49%.  

It also offers a five-year fixed-rate product that covers small houses in multiple occupation/multi-unit freehold blocks of up to six beds or units, which starts at 6.99%. Loans for large houses in multiple occupation/multi-unit freehold blocks, for up to 12 beds or units, begin at 7.09%.  

The firm says: “The recent rise in mortgage rates across the whole of the industry leaves some BTL borrowers, particularly those remortgaging, unable to meet the interest cover ratio requirements stipulated by the Prudential Regulatory Authority.”  

It adds that these loans “come with a variety of product fee options, which enables the lender to offer lower interest rates”.  

The business adds that this new range sits alongside its existing one and two fixed-rate products and tracker mortgages.  

Landbay managing director, intermediaries Paul Brett says: “The mortgage industry is having to get used to a new, higher interest rate environment, moving from a 13-year era of historically low rates.   

“Rental property is a vital part of the housing mix in the UK, we will continue to work hard to find solutions that mean people can still borrow for this reason.   

“Although fees are now higher it means that we can keep rates lower and landlord borrowers are in a better position to meet interest cover ratio requirements.   

“If we keep fees lower and raise interest rates, monthly payments would work out similar but in many cases landlords would not meet the interest cover ratio unless they increase their tenants’ rent.”