Fleet announce cuts to HMO & limited company product rates

Buy-to-let specialist lender, Fleet Mortgages has announced new rate cuts on specific standard, limited company and HMO products.

Related topics:  Finance
Warren Lewis
26th June 2019
HMO 2

According to the lender, the rate cuts to the following products are as follows:

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.

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.”

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