Landbay launches 25 year mortgage terms

Landbay launches 25 year mortgage terms
We will now be offering 25 year terms on mortgages, bringing us in line with the vast majority of our competitors where 20-30 year terms are now the norm.

Landbay is now offering mortgages of up to 25-year terms after feedback from its network of specialist broker partners.

In a blog post the lender, which previously offered terms of up to ten years, said it now expects to see an increase in the number of borrowers it sees, but predicts its average mortgage duration of three to five years will remain unchanged as most borrowers will refinance after the initial period.

Three months before the reversion date, Landbay offers the borrower a retention product that will typically be cheaper than the reversion rates borrowers would have to pay.


John Goodall, CEO and Co-Founder of buy to let specialist Landbay, said: “We will now be offering 25 year terms on mortgages, bringing us in line with the vast majority of our competitors where 20-30 year terms are now the norm. We listen closely to the feedback from our broker partners and one of the things that is regularly mentioned is the need for longer term mortgages, so we suspect that demand for these longer term deals will be high.

“The vast majority of borrowers will look to refinance after the initial period and so the increase is not expected to change our average loan duration. If a borrower does not refinance at the reversion date, they will move from the fixed rate product to a tracker, at a rate that is no more than 0.5% higher than our standard tracker product.

“Landbay continues to be a competitive option in the buy to let specialist landscape, providing a reliable source of funding for professional landlords that are underwritten to rigorous standards by our highly experienced lending team. Our track record speaks for itself, with no defaults, arrears or even late payments to date.”

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