Buy-to-let mortgage lender Landbay has launched a new product range with higher loan-to-values (LTVs), as confidence returns to the property market.
Landbay, which was a peer-to-peer lender until it exited the retail investment market last December, tightened its lending during the lockdown, dropping its loan-to-values (LTVs) to 60 per cent.
A Landbay spokesperson told Peer2Peer Finance News that the risk of house prices falling during the lockdown had resulted in a higher cost of funds, as funders pulled back their funding.
Now that restrictions are being eased on the property market and the nation’s lockdown, Landbay has been able to resume physical valuations once more and funders are returning to meet the huge demand, the spokesperson added.
Rates on Landbay’s new product range start from 3.99 per cent with LTVs back to pre-lockdown levels of 75 per cent.
Landbay will lend both on large and small houses in multiple occupation of up 12 units, multi-unit freehold blocks and new build properties.
The firm said that physical valuations are now available on all new buy-to-let applications.
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“It is good to be able to support our loyal brokers and increase our range of mortgages, particularly with a 75 per cent LTV product which we have received a huge amount of demand for,” said Paul Brett (pictured), managing director of intermediaries at Landbay.
“It has been our aim throughout this challenging period to be a supportive force for brokers and to be a steady presence in the market.
“And, due to our diversity of funding we have fortunately been able to continue lending throughout the whole of the last two months.
“This range will now help to give something more to our brokers and their clients, who are keen to remortgage or keep investing in the buy-to-let market.”
Landbay said it is working through its pipeline of loans from applications received throughout the lockdown.
All new applications use Landbay’s instant Decision in Principle application process, launched in March.