The specialist buy-to-let lender Fleet Mortgages has unveiled reductions in rates on all their five-year fixed-rate products across their key ranges, namely, standard, limited company, and HMO/multi-unit block.

Taking a deep dive into the specifics of these adjustment finds rate cuts across different areas of borrowing.

For Standard and Limited Company Borrowers:

• Five-year fixed rates for up to 70% Loan-to-Value (LTV) have been trimmed to 5.34%.
• Five-year fixed rates, if your LTV stands up to 75%, have been skimmed down to 5.74%.
• If your property has a respectable A-C Energy Performance Certificate (EPC) rating, you can reap the benefits of ‘Green’ five-year fixed rates up to 75% LTV at 5.64%.

For HMO/Multi-Unit Block (MUB) Borrowers:

• The five-year fixed rates for up to 70% LTV now stand at 5.54%.
• If your LTV goes up to 75%, you could receive a five-year fixed rate of 5.88%.
• Lastly ‘Green’ five-year fixed rates for up to a 75% LTV have been revised to 5.78%.

Each of these rate modifications is potentially a stride toward making your property investment goals a reality.

Confidence in Future Trajectory of Rates

Steve Cox, Fleet’s chief commercial officer, states that these new product rates, which are 20 basis points off their previous levels, should give investors a greater sense of confidence in the future. An awareness of the financial challenges landlords face has fueled this cut, helping to ease affordability pressures and furnish more robust investment conditions.

Rider to the Rate Cuts: Variable Fee Structure

Alongside these rate cuts, Fleet Mortgages has introduced a fee structure dependent upon the loan-to-value (LTV) ratio.

For investors eyeing the 70% LTV five-year fixes, the fee comes to a total of 5%. However, for all other product types, the fee is fixed at a lower rate of 3%. Subsequently, the revert rate for these products is set at Bank Base Rate plus 3%.

Furthermore, these alterations come on the tail of Fleet’s recent launch of product transfer options, including two- and five-year fixed-rate options for their existing borrowers, which offer a fee reduction of 50 basis points when compared to new business product ranges.