The new terms are available to borrowers immediately, but investment in new loans is not expected to be affected until January 2018.

The change is also unlikely to affect the lender's expected average mortgage duration of three to five years.

At present, when the fixed rate period expires, Landbay’s mortgages revert to a tracker rate equivalent of Libor +4.75%.

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In most cases, however, borrowers will be able to refinance their mortgage at a rate lower than this.

In addition, three months before the reversion date, the lender will offer the borrower a retention product that is typically cheaper than the reversion rates the borrower would have to pay.

For those borrowers who choose not to refinance with Landbay (or anyone else), the fixed rate mortgages that revert will switch to a tracker plus rate – especially for Landbay investors – that is 0.5% higher than the standard tracker rate.