Fleet Mortgages cuts rates on HMO & Limited Company products and simplifies range

26 June 2019

Fleet Mortgages, the buy-to-let specialist lender, has today (26th June 2019) announced rate cuts for specific standard, limited company and HMO products and a simplifying of its product range.

Fleet has announced rate cuts to the following products:

Standard – its five-year 80% LTV product fixed-rate product has been lowered from 3.99% to 3.94% - it has a fee of 1.5%, a rental calculation of 125% at 5.5%, and comes with a free or discounted valuation.
Limited company – five-year 75% LTV fix reduced to 3.39% from 3.49% (1.5% fee, rental calculation 125% at 5.5%); five-year 75% LTV fix reduced to 3.39% from 3.49% (1.75% fee, rental calculation 125% at 5.5%) with a free or discounted valuation; five-year 75% LTV fix reduced to 3.49% from 3.59% (1.75% fee, rental calculation at payrate); five-year 80% LTV fixed-rate, with free or discounted valuation down to 3.94% from 4.19 % (1.5% fee, rental valuation of 125% at 5.5%).
HMO – its two-year 65% LTV fixed-rate product has been lowered to 3.14% from 3.39%; two-year 75% LTV fixed-rate product lowered to 3.24% from 3.49%; and its two-year 80% fixed-rate product lowered to 4.04% from 4.29%. All three products come with a fee of 1.5%, a reversion rate of LIBOR plus 5.25% and a rental calculation of 125% at 6.06%.

Following feedback from intermediary partners, Fleet Mortgages has also removed 20 products from its range in order to simplify its offering.

The lender has also extended all its end-dates on two-year fixes to 31st October 2021 and five-year fixes to 31st October 2024, plus it has extended the dates on their stepped early repayment charges.

The lender also re-iterated several criteria enhancements including:

The availability of day one remortgages with lending based on the full market value within six months if significant works have been carried out on the property.
A rental calculation of 125% at 5.5% for all taxpayers, unless otherwise stated.
The ability to lend on properties which are next door to each other, plus capital raising is available for all purposes, except for certain tax and gambling debts.
No extra paperwork requirements for portfolio lending, with no stress testing on the background portfolio properties, and the borrower can have an unlimited number of properties within the portfolio.

This is in addition to the criteria enhancements announced in May which included: minimum income requirements for borrowers reduced from £25k to £15k; the minimum primary applicant age has been reduced to 21 years old from 25; and the maximum age for the borrower at the term of the mortgage has been changed to 95 years old also Fleet has increased the 65% LTV aggregate portfolio lending size by £1m from £4m to £5m;.

The full new Fleet Mortgages’ product guide is available to view by visiting the website at: https://www.fleetmortgages.co.uk/products/

Steve Cox, Distribution Director of Fleet Mortgages, commented:

“After taking feedback from a large number of our intermediary partners we have decided ‘less is more’ when it comes to the range and have decided to simplify our offering to ease understanding and to ensure advisers are aware of the sectors we operate in and the benefits of using Fleet. Due to our new funding line we’re also in a position to cut rates for several fixed-rate HMO and limited company products, plus one of our standard five-year 80% LTV products.

“Our aim as always is to ensure we can support advisers’ buy-to-let clients in a variety of ways and that we are both accessible in terms of our admin requirements and can deliver certainty to all concerned. I would therefore urge all advisers to utilise the sales experience we have at both head office and out in the field with our BDMs. As specialists in this sector we are continually looking to engage with advisers and to provide a range of products and criteria that fits the needs of today’s buy-to-let client.”