Landbay has launched a new buy-to-let affordability calculator, enabling brokers to compare pricing options across its different products.
This additional functionality allows brokers and landlords, to see how much can be borrowed and how much rent would need to be charged on different BTL products, for both remortgaging and house purchase.
Brokers can enter information on the property price and amount to be borrowed, and the calculator will display the interest cover ratio, total amount that can be borrowed, plus any fees for each selected BTL deal.
Alternatively there’s the option to enter the property price and anticipated monthly rent and the results will show the maximum amount that can be borrowed for each product.
The calculator incorporates the interest rate cover ratio for stress testing. Landbay says this is useful for comparing two- and five-year fixes to highlight potential differences in affordability. For example Landbay’s new two-year like-for-like remortgage deals are stress tested at 1%, rather than the standard 2%, while the five-year deals are stressed at pay rate only.
Landbay managing director Paul Brett says he hopes the new affordability calculator proves to be a useful took for both brokers and landlords. “It is especially beneficial when comparing variable interest rate and fee structures, as it instantly illustrates the most affordable and suitable products available. For example, a lower rate and higher fee means more money can be borrowed and you can see the differences at a glance.”
