Strong results announced at Fleet

Strong results announced at Fleet

Fleet Mortgages has announced a strong set of results for 2016, lending over half a billion pounds and turning over a £2m profit in only its second full year of lending.

The lender said that the immediate fall-out from last June’s referendum vote on membership of the EU impacted slightly on its lending activity, as it acted responsibly in light of the uncertainty surrounding the property and financial markets. At the time Fleet Mortgages restricted some products until it deemed the markets had settled down.

Fleet Mortgages has aspirations to lend in the region of a billion pounds in 2017 in the buy-to-let sector and recently launched a number of new products including its return to the 80% LTV market with two-year fixes available for individual and limited company borrowers. It also launched a 75% LTV lifetime tracker product for individuals and both 65% and 75% LTV lifetime trackers for limited companies.

Fleet also gave an insight into the make-up, and credit-quality, of its mortgage book which it says now comprises over 3,000 accounts since its first completion. It said:

• There are no arrears cases on any of its mortgage accounts.

• Its average LTV is 67% and its average weighted Interest Coverage Ratio (ICR) is 153% at the stressed rate – a figure, it says, that is far higher than the 145% many PRA-authorised lenders have recently been forced to adopt.

• The average Risk Navigator Score for a Fleet Mortgages borrower is over 480; the UK average is 380.

• The average number of properties owned by a typical Fleet Mortgages’ borrower is 12, which it says confirms the lender is used to dealing with experienced, professional landlords and has a robust, yet uncomplicated, underwriting process in place.


The new product guide is now available to view by visiting Fleet Mortgages’ website at: www.fleetmortgages.co.uk/products-p-9.html
 
Fleet Mortgages is an intermediary-only, buy-to-let lender and its products are available to individuals, limited companies and those looking to invest in Houses in Multiple Occupation (HMO)/Multi-units.

Bob Young, Chief Executive Officer of Fleet Mortgages, commented: “Fleet Mortgages had a very strong year of lending activity in 2016 and we are particularly pleased with the overall credit quality of our mortgage book – something we take very seriously and with an underwriting process which is both tailored and robust. We have a management team that has been involved in the buy-to-let sector for many, many years and our focus remains on ensuring both our potential (and existing) borrowers can afford the loans they are taking out. I’ve always said that anyone can lend money badly (and many do) but that we at Fleet Mortgages would always ensure that quality comes first.

Our average LTV, ICR, Credit Bureau Scores show how tight our screening processes are, ensuring we’re able to model potential borrower’s propensity to pay and whether, based on an extensive analysis of their position, they can withstand financial shocks. This, in our view, is what responsible lending is all about and we’re pleased that other lenders within the sector are now coming to the place where we started from. By having this robust, intelligent underwriting process in place we can make sure borrowers don’t take out unaffordable loans which protects both us and the adviser as they know their clients have been fully assessed.

Our focus in 2017 will remain on credit quality but also, in an environment where many advisers are worried about the added complexities that others have added into the buy-to-let process, we will remain simple to deal with. We provide certainty and simplicity and, as always, we will be making it as easy as possible to work with Fleet Mortgages. We’re looking forward to the rest of 2017 and ensuring that for advisers and their clients we continue to do exactly what it says on the tin.”

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Latest Comments

Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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