Fleet Mortgages, a specialist in the buy-to-let lending market, has just expanded its portfolio with the introduction of several new mortgage products specifically designed for landlords. This move includes both brand new offerings and significant price reductions across its existing range.
In an expansion of their product line, Fleet Mortgages has launched two new five-year fixed-rate mortgage products tailored for landlords. These products are particularly attractive due to their favorable loan-to-value (LTV) ratio of up to 65%.
The first of these products offers a competitive fixed interest rate of 5.64%, coupled with a fixed fee of £1,999, and is targeted at loan sizes up to £300,000. The second product comes with a slightly higher interest rate of 5.84%, but boasts no product fee, making it ideal for larger loan requirements up to £2 million.
Price Cuts on Existing Products
In addition to introducing new products, Fleet Mortgages has also reduced the interest rates on its existing five-year fixed-rate offerings at 75% LTV. The reductions amount to 15 basis points, providing even more attractive terms for borrowers. The revised lineup includes:
- A product now priced at 5.94%, down from 6.09%, with the benefit of no associated fees.
- Another option now at 5.34%, previously 5.49%, which includes a 3% fee but with a minimum charge of £750. Both of these products support loan amounts up to £1 million.
Additional Benefits and Options
All standard products from Fleet Mortgages feature a rental income calculation of 125% at the borrower’s pay rate for basic rate taxpayers and 145% for higher rate taxpayers. This is a crucial factor for landlords when planning their finances. Additionally, the lender offers free valuations for properties valued at up to £500,000, with discounts available for properties exceeding this value.
Fleet Mortgages also continues to provide a range of tracker mortgage products and product transfer options, catering to the diverse needs of existing borrowers.
Steve Cox, Chief Commercial Officer at Fleet Mortgages, expressed enthusiasm about the new releases and the price cuts. He highlighted the importance of providing both zero and fixed fee options in the current market, acknowledging the varying needs of landlords. According to Cox, the past 12 to 18 months have shown a clear demand from landlords for more flexible and affordable borrowing options, particularly in a high interest rate environment.
The new products and adjusted pricing are aimed at giving mortgage advisers a broader range of solutions to recommend to landlords, whether they’re looking to remortgage or purchase new properties.