Peer-to-peer (P2P) buy-to-let mortgage lender Landbay has launched a new range of products for professional landlords that meet new tighter lending regulations set by the Prudential Regulation Authority that came into force in this week.
These require rent to be 125% of mortgage payments at 5.5% APR and are yet another squeeze on the buy-to-let sector.
The move by Landbay, which gained full FCA authorisation on 22 December last year after launching in April, comes after Zoopla invested a ‘six figure sum’ in the company. Zoopla also now promotes Landbay’s P2P offering via its ‘investment channel’ on Zoopla.co.uk.
“The buy to let market is set to become more complex in 2017, as landlords face an increasingly intricate lending landscape and tighter regulation,” says Landbay’s Chief Lending Officer Paul Clampin (pictured).
“It’s in such a context that borrowers and brokers need solutions that meet their changing needs, so these new products have been designed to do just that for the growing number of professional landlords.”
Landbay was one of four ‘promising and innovative start-ups’ that Zoopla pumped £1m into during February last year. The other three include online mortgage adviser Trussle, property management softwre company Fixflo and housing data firm Property Detective.
The new Landbay landlord mortages include a standard term tracker, several fixed rate products, an HMO tracker and an expat landlord tracker.