Fleet Mortgages, the buy-to-let specialist lender, has today announced rate cuts to two of its 80% LTV products in both its standard and HMO product ranges.
From today, advisers and their clients will have access to Fleet’s two-year 80% LTV product for individual landlords, with the rate cut from 3.69% to 3.59%, and the lender’s five-year HMO product with the rate cut from 4.29% to 4.19%.
The rate cuts follow Fleet’s recent changes to its lending and product criteria, introduced earlier this month. These covered a range of criteria from loan sizes to valuations, transactions between connected parties to gifted deposits.
Specific highlights of the enhanced criteria include:
- Loan sizes – Fleet has increased its maximum loan size to £2m for a single loan at 75% LTV and £1m for a single loan at 80% LTV. This excludes HMO, MUB and flats above commercial properties.
- Valuations – Fleet has reduced its minimum property valuation to £50k (subject to max 70% LTV, up to £74,999), from a previous minimum of £75k.
- Portfolio lending aggregate exposure – Fleet will now lend up to a maximum of £5m per obligor; £2m at 80% LTV and over £2m at 75% LTV.
- Transactions between connected parties – Fleet will now consider applications where there is a connection between the buyer and the seller – for example, a trading company selling to an SPV or a parent/grandparent selling to a child/grandchild.
- Gifted deposits – Fleet will now accept gifted deposits on connected party transactions for immediate family members (Mother, Father, Grandparents or Siblings).
Steve Cox, Distribution Director of Fleet Mortgages, commented: “We are constantly reviewing our product offering in terms of both intermediary feedback and competitor analysis. Because of this, and the strong funding lines we have, Fleet is able to cut rates on these two 80% LTV products accessible to both individual landlords and those purchasing/refinancing a HMO property.
“Professional and portfolio landlords are much more likely to be active in the HMO space, plus the changes to the rules last year mean there are now a much larger number of properties classified as such. It’s therefore important that we continue to offer access to quality HMO products and ensure that our specialist knowledge and understanding can help advisers with clients active here.
“These rate cuts, coupled with our raft of criteria changes, ensure that Fleet remains at the cutting edge of this specialist market and that we are able to help even more landlords get the finance they need.”