Specialist lender Fleet Mortgages has cut buy-to-let rates by 20 basis points (bps) across all of its five-year fixed products with 3% or 5% product fees. The reductions cover the Standard, Limited Company and HMO/MUFB ranges, with every product available up to 75% LTV.
In the new five-year fixed range with 5% product fees, which launched last week, Standard and Limited Company rates fall from 5.24% to 5.04%. The HMO/MUFB rate drops from 5.49% to 5.29%. Standard and Limited Company borrowers get a free valuation on properties worth up to £500k, while the HMO/MUFB product comes with £1,000 cashback.
Fleet has also cut buy-to-let rates by the same amount on its five-year fixes with 3% fees, including the products for properties with EPC ratings of A to C. The revised pricing is:
- Standard and Limited Company products: from 5.64% to 5.44%
- Standard and Limited Company EPC A to C products: from 5.54% to 5.34%
- HMO products: from 5.89% to 5.69%
- HMO EPC A to C products: from 5.79% to 5.59%
Fleet said lower rates across two fee options give advisers more choice when assessing borrowing needs, particularly for landlords refinancing existing properties or raising capital for further investment.
The lender added that the lower headline rates on the 5% fee products may help landlords meet interest coverage ratio requirements, where rental income and affordability calculations would otherwise limit how much they can borrow.
“Rates have been on everyone’s mind in recent weeks and months, particularly given last week’s decision to increase Bank Base Rate (BBR),” said Steve Cox, chief commercial officer at Fleet Mortgages (pictured).
“However, as we know, product pricing doesn’t have to follow BBR trends and it is clearly positive for us to be able to announcing rate cuts today.
“We introduced our new five-year fixed-rate products with 5% fees only last week, and being able to reduce pricing across both these and our existing 3% fee range so quickly is welcome news.
“While interest rates and funding costs continue to be subject to change, we are always looking for opportunities to improve our pricing where possible, and these reductions demonstrate our commitment to passing on those improvements to borrowers.
“Affordability remains a significant consideration across the buy-to-let market, particularly for landlords coming to the end of existing mortgage deals who may be refinancing at higher rates than they have previously experienced.
“These reductions give advisers more options when working through those considerations with their clients, and we will continue to review our product range and pricing to ensure we are supporting the needs of both existing and prospective landlord borrowers.”
