Fleet Mortgages, the buy-to-let and specialist lender, has today (9th October 2018) launched a series of fixed-fee mortgages to complement its existing product range.
The new fixed-fee range offers products in Fleet Mortgages’ three core sectors – standard, limited company and HMO/multi-unit block (MUB) – and the lender believes it will specifically help those advisers who are sourcing larger buy-to-let loans.
Both two- and five-year fixed-fee products are now available and Fleet has introduced new two-year fixed-rate products, with an increased maximum loan size of £250k, for both standard and limited company borrowers.
The lender is also reducing its early repayment charges term on its LIBOR-tracking products from three years down to two.
Highlights of the new fixed-fee product range include:
· Standard – two-year fixes at 75% LTV. 3.09% with a fixed fee of £1,999 (max loan size £250k); or 3.49% with a fixed fee of £4,999 (no max loan size).
· Standard – five year fixes at 75% LTV. 3.79% with a fixed fee of £4,999; or a 3.99% pay-rate product at 3.99% with a £4,999 fixed fee, offered at rental cover of 135% at initial rate.
· Limited company – two-year fixes at 75% LTV. 3.09% with a fixed fee of £2,499 (max loan size £250k); or 3.49% with a fixed fee of £6,250 (no max loan size).
· Limited company – five year fixes at 75% LTV. 3.89% with a fixed fee of £6,250; or 3.99% pay-rate product at 3.99% with a £6,250 fixed fee, offered at rental cover of 125% at initial rate.
· HMO – 3.59% two-year fix at 65% LTV with a £7,499 fixed fee; or 3.69% two-year fix at 75% LTV with a £7,499 fixed fee; plus a 3.99% five-year fix at 75% LTV with a £7,499 fixed fee.
These fixed-fee products will sit alongside the rest of Fleet Mortgages’ with a percentage fee structure in place. Fees on the standard range remain at 1%; fees on the limited company range are 1.25%, except for the pay rate product which is 1.5%; and fees on the HMO range remain at 1.5%.
Fleet Mortgages has also today launched a new standard 75% LTV, two-year fix at 2.99% with a 1% fee.
For all standard and limited company products – except those offered at pay rate – Fleet Mortgages operates an ICR of 125% at 5%, regardless of tax rate.
Fleet Mortgages is a specialist buy-to-let lender with products distributed via intermediaries only. It is specifically focused on providing mortgages to portfolio and professional landlords and recently announced that two-thirds of its purchase mortgage applications were now via limited companies.
Bob Young, Chief Executive Officer of Fleet Mortgages, commented: “At Fleet we are always looking to provide our adviser partners and their clients with a range of different product options in order to find the right one for them. The introduction of this new fixed-fee range to complement our existing percentage-based fee product offering does just that, and we believe it will be especially beneficial for those who are seeking larger buy-to-let loans.
“These new fixed-fee products are available within our three core sectors – standard, limited company and HMO – and are offered at highly competitive rates, plus our standard and limited company borrowers benefit from our 125% at 5% rental cover calculation, except on the pay-rate products which are offered at 135% at the initial rate for standard borrowers, and 125% at the initial rate for limited company borrowers.
“We have seen a noticeable uptick in buy-to-let activity in recent months, with professional landlords in particular seeking to add to portfolios, whilst also looking at refinance options in order to release capital for further purchases. We believe these fixed-fee mortgages will provide greater product choice for landlord borrowers and provide further evidence of our continued specialist focus on the market and our increased appetite to lend.”