Fleet Mortgages unveils lower completion fee

Fleet Mortgages unveils lower completion fee

Buy-to-let and specialist lender Fleet Mortgages has unveiled a product with lower completion fees for loans up to £150,000.

The two-year, fixed-rate product is available for both standard buy-to-let borrowers and those utilising a limited company vehicle and offers lower completion fees for those wishing to borrow £150,000 or less.

The standard buy-to-let product is offered at 3.29 per cent until 31 October 2017 with a reversion rate currently of 5.1 per cent (Libor plus 4.5 per cent) and a completion fee down from 1 per cent of the loan to £500.

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The limited company option has a rate of 4.39 per cent until the same date, and a reversion rate of 5.35 per cent (Libor plus 4.75 per cent) and a completion fee down from 1.5 per cent of the loan to £750.

Both standard and limited company options are available up to 75 per cent LTV and available on house purchase and remortgage.

The minimum loan is £25,001 and the maximum £150,000, with early repayment charges of 5 per cent and a booking fee of £150.

Fleet Mortgages has also recently repriced two of its lifetime tracker products for those purchasing or remortgaging HMO properties.

For loans up to 65 per cent LTV the new rate is 4.25 per cent (Libor plus 3.65 per cent) and for those up to 75 per cent it is 4.8 per cent (Libor plus 4.2 per cent).

Bob Young, chief executive of Fleet Mortgages, said that part of developing a product range is understanding where there may be opportunities and also acknowledging it is difficult to have ‘catch all’ offerings.

“By this I mean that you have to tailor your products to fit different borrower circumstances and property types, vehicles, etc, the list goes on.

“These new products for both standard and limited company buy-to-let are essentially offering cuts in our completion fees to those borrowers who want and need smaller loans.

He added: “This is likely to be because they are purchasing or remortgaging in a lower-priced area and therefore it makes sense for us not to operate a percentage fee but charge a fixed amount instead.”