Buy-to-let and specialist lender, Fleet Mortgages, has announced a series of price and fee cuts across its three core product areas – standard, limited company and HMOs.
According to the lender, all price changes are at 75% LTV for both two- and five-year products.
The new products are:
- Standard: five-year fix at 75% LTV now at 3.49%, down from 3.79%.
- Limited company: five-year fix at 75% LTV now at 3.79%, down from 3.99%.
- HMO: two-year fix at 75% LTV now at 3.49%, down from 3.69%; five-year fix at 75% LTV now at 3.89%, down from 3.99%.
Fleet Mortgages has also announced fee reductions for all limited company and HMO products. For limited company products, fees have been dropped from 1.5% to 1.25% and from 2% to 1.5% on all HMO products. Fees across its Standard range remain unchanged at 1%.
The rate and fee changes follow the lenders’ recently announced ongoing commitment to portfolio landlord clients, following the introduction of the PRA’s underwriting changes. Fleet Mortgages maintains three key commitments to advisers and their portfolio landlord clients.
- No additional work – a standard application form and Property Asset & Liability Statement remains plus no requirement to key in details of the individual property in the portfolio
- No delays for the client due to additional processing.
- Focus on quicker processing times meaning no increases in costs to client.
The lender also outlined and reinforced its key criteria and underwriting requirements which will not change. These include an ICR of 125% at 5%; access to experienced portfolio landlord underwriters; an online system already set up to deal with portfolio landlord lending; income from rental accepted; unlimited background portfolios with other lenders; limited company portfolio lending welcomed; HMO/multi-unit blocks/shared houses accepted; and up to four applications/directors/shareholders allowed per application.
Bob Young, Chief Executive Officer of Fleet Mortgages, commented: “We continue to listen to broker feedback and to shape our product proposition accordingly, which is why we’ve dropped our pricing on a number of two- and five-year products, plus have cut our fee levels for all limited company and HMO products.
This backs up our continued commitment to those advisers with portfolio landlord clients, who are increasingly likely to be looking for limited company purchase and refinance options, and potentially higher yielding HMO opportunities. These price and fee cuts should certainly be attractive to this type of client and tie-in with our easy to understand lending criteria, plus our commitment to simplicity, particularly with regards to writing business with us. Fleet Mortgages is focused on upping our lending activity in the buy-to-let market and we are here to help and support brokers in this important sector.”