Landbay’s recent decision to reduce rates by up to 0.20% across a significant portion of its 75% loan-to-value buy-to-let (BTL) product range signals a strategic move to attract landlords amid a tightening mortgage landscape. The adjustments affect both the standard Core and Core AVM two- and five-year fixed-rate products, covering 19 offerings in total. For investors, this translates into modest but meaningful savings on borrowing costs, particularly for those operating at the 75% LTV threshold.
This move comes at a time when many BTL lenders have held rates steady or increased them in response to broader economic pressures and regulatory changes. Landbay’s cuts suggest confidence in its risk appetite and a bid to capture market share from competitors who remain more cautious. According to our data, the average BTL mortgage rate on 75% LTV five-year fixes currently hovers around 6.5%, so a 0.20% reduction could improve net rental yields by a noticeable margin, especially on larger loan amounts.
Investors should weigh these rate cuts alongside Landbay’s underwriting criteria and product features. The Core AVM option, which uses automated valuation models, can speed up approvals but may limit flexibility in some locations or property types. Those with portfolios near the 75% LTV band may find these products particularly attractive, but must remain vigilant on affordability stress tests and potential future rate rises.
Overall, Landbay’s pricing adjustment adds a layer of competitiveness in the mid-LTV BTL segment. For landlords looking to remortgage or expand, it is worth comparing these updated offerings against other lenders’ products, particularly as the market adjusts to ongoing inflationary pressures and evolving regulatory frameworks.
Source: Mortgage Strategy
