"These three limited edition five-year fixes offer landlord borrowers a highly competitive rate from the outset, but with no completion fees to pay, meaning they do not have to pay those costs upfront or add the cost of the fee to the loan"
- Steve Cox - Fleet Mortgages
The new five-year fixes from Fleet Mortgages are available up to 75% LTV with standard/limited company borrowers being able to access a rate of 5.59%. For HMO/MUB borrowers the rate is 5.93%. There is a £199 booking fee for each product and includes free valuations for both standard and limited company borrowers for properties up to a value of £500k.
Last month, Fleet cut rates across its entire range of fixed-rate products, which includes Green - for properties with an A-C Energy Performance Certificate rating.
Rates start at 4.59% for standard and limited company borrowers, and 4.99% for HMO/MUB borrowers. All products come with a revert rate of Bank Base Rate plus 3% and all end dates were extended to the 30th of April.
Steve Cox, Chief Commercial Officer at Fleet Mortgages, commented: “Last year, the challenge of a higher interest rate environment and what it required in terms of affordability criteria, meant we saw a large number of lower rate/higher fee products being launched.
“Now that we have seen rates come off those highs, with swap rates stabilising, and a far more competitive rate environment, we wanted to ensure we offered a different set of products which did not come with any completion fee whatsoever.
“These three limited edition five-year fixes offer landlord borrowers a highly competitive rate from the outset, but with no completion fees to pay, meaning they do not have to pay those costs upfront or add the cost of the fee to the loan.
“Feedback from intermediary partners suggests these offer a strong option, particularly for portfolio landlord clients who are seeking to capital raise but want to minimise any reduction in the value of their equity.
“Without the fee, these product rates for standard and limited company borrowers are equivalent to the same all-in cost as a 4.99% five-year product with a 3% fee, which makes this a very strong product offering and one which will mean no initial outlay or the addition of potentially thousands of pounds to the overall loan.
“Advisers will clearly have to work with landlord clients to review what option is best for them, but these new products provide them with another route to move down, if the maths can work for the borrower and they would like to benefit from a zero completion fee approach.”