Buy-to-let specialist lender Fleet Mortgages has refreshed its entire product range for individuals, limited companies and those seeking finance for HMOs and multi-unit blocks.
Highlights include the launch of two lifetime tracker products at up to 75 per cent loan-to-value. The first, for individual borrowers, is priced at 3.6 per cent plus Libor – currently at 0.39 per cent – with a 1 per cent completion fee.
The second, for limited companies, comes with a rate of 4.19 per cent (Libor plus 3.8 per cent), with a 1.5 per cent completion fee.
A rental calculation of 125 per cent applies to the rate of interest on both products respectively. All other limited company and individual products are now offered at the same rental calculation at 5 per cent.
The lifetime tracker products are only available to strong credit-scoring customers.
In addition, the lender has cut rates for limited companies.
The two-year fix option has been discounted by 0.59 percentage points to 3.6 per cent, and the five-year fix is available at 3.99 per cent – from 4.69 per cent. A completion fee of 1.5 per cent applies to both products.
Rate cuts for HMO/multi-unit block products include a two-year fix to 65 per cent LTV at 3.79 per cent or 3.99 per cent at 75 per cent LTV.
What is more, a five-year deal at 75 per cent LTV is now priced at 4.29 per cent. The completion fee for each loan is 2 per cent.
Provider view
Bob Young, chief executive officer of Fleet Mortgages, said: “It has undoubtedly been an interesting few months for the buy-to-let market and, after a somewhat topsy-turvy summer, we are starting to see a more stable environment.
“Demand for buy-to-let lending has begun to improve and we are therefore very pleased to announce the refresh of our product range, which contains an increase in maximum LTV back up to 75 per cent as well as some exciting changes to our lifetime trackers offered at pay rate.
“We have also cut our fixed rates for both limited company and HMO/multi-unit products and believe they, along with our individual offering, remain particularly competitive in the current market environment.
Adviser view
James Carter, principal at London-based intermediary Independent James, said: “Any reduction to rates is obviously good for the consumer. To reduce rates on the entirety of its range shows that Fleet is willing to move with the current market trend of rate reductions."
He added: “I would say that the buy-to-let purchase market is low if not dead at the moment. This follows the increase in buy-to-let stamp duty. We are certainly seeing greater activity in the residential marketplace where interest rates remain competitive.”
Charges
The competition charge on the aforementioned loans varies from 1 per cent to 2 per cent. An application fee is also applicable.
Verdict
Mr Young is certainly correct when he says that it has been an interesting few months for the buy-to-let marketplace. The market has seen the introduction of more red tape under the Mortgage Credit Directive, which was implemented in March this year. What is more, the market saw an artificial hike in applications at the start of the year as borrowers sought to secure a loan ahead of the increase in stamp duty on buy-to-let properties.
The buy-to-let arena is certainly not as appealing as it has been in the not-too-distant past. Here, it would appear that the lender is attempting to reignite enthusiasm among current and prospective landlords with competitive rates. The percentage-based completion fee, however, could be a bug bear for many – particularly those who are seeking to take out a sizeable loan.
