29 Sep 2021
Legal & General Mortgage Club announces Landbay product changes
Legal & General Mortgage Club has today announced two new semi-exclusive, buy-to-let mortgage products for its members. The products are available from Landbay and will suit individuals and limited companies (SPV).
Mortgage advisers using Legal & General Mortgage Club will access two five-year, fixed rate mortgages. The first, with a rate of 3.09%, has a maximum loan-to-value of 70%, a 1.5% product fee and tiered ERCs (5%, 5%, 3%, 2% and 2%). The product is also subject to a 5.0% reversion rate (+BBR) and has a loan limit of £30,000 - £1.5m. The second product is only different in that its maximum loan-to-value is 75%, its minimum loan amount is £75,000 and its rate is 3.19%.
Both products allow for day one remortgages and are available for properties situated above, or adjacent to, commercial structures, although this is subject to terms. Layered limited companies may also qualify and there is a capital raising facility. Landbay’s products do not, however, accept new builds or trading limited companies.
The buy-to-let market has been frenzied since the start of the year, with many people looking to secure investment properties while the Government’s Stamp Duty holiday put savings of up to £15,000 on offer. Interestingly, however, we have seen this heightened interest continuing well past the gradual end of the Government scheme, with demand for rental accommodation continuing to be high among younger groups and those coming to the UK from abroad.
This has created a clear need for a wide range of buy-to-let mortgages, designed to accommodate an even wider variety of landlord circumstances. The addition of these latest products will naturally help to support advisers searching for competitively priced products that can meet the needs of both landlords and those operating within a limited company structure.
Danny Belton, Head of Lender Relationships, Legal & General Mortgage Club
Despite what might have been predicted after the end of the first Stamp Duty holiday in June, the buy-to-let sector remains robust and booming.
We have seen an increase in first-time landlords coming into the market while limited companies continue to be a popular route for property investors. These two semi-exclusive products will give a competitive advantage to all Legal & General Mortgage Club DA firms and related networks, providing them with even lower rates and larger loans for their landlord clients.
Joela Jenvey, Head of Networks and Clubs at Landbay
Notes to editors
About Legal & General
Established in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with international businesses in the US, Europe, Middle East and Asia. With almost £1.3 trillion in total assets under management*, we are the UK’s largest investment manager for corporate pension schemes and a UK market leader in pension risk transfer, alternative asset origination, life insurance, workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.
* at 30 June 2021
About Legal & General Mortgage Club
Legal & General Mortgage Club is one of the UK’s largest and longest-running mortgage clubs, completing £667bn of mortgages since 1995. We are involved in nearly one in five of all mortgages in the UK, in addition to nearly one in three of all intermediated mortgages. The Mortgage Club prides itself on adding value to the adviser community by working closely with new and existing lenders to deliver great products, pricing and criteria. Our popular SmartrFit tool, which is free to advisers, combines an affordability calculator with lender criteria to provide accurate, quick results, to help make advisers jobs easier so they can spend time where it matters.