Buy-to-let  

Fleet launches five buy-to-let deals

Fleet launches five buy-to-let deals

Fleet Mortgages has launched five buy-to-let products, two for individuals and three for limited companies.

The individual products include an 80 per cent loan-to-value mortgage with a two-year fixed rate at 3.79 per cent; and a 75 per cent LTV mortgage with a lifetime tracker at 4 per cent.

Both products come with a 1 per cent fee and rent is calculated at 125 per cent at 5 per cent.

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The limited company products include one two-year fix and two lifetime trackers.

The former has an LTV of 80 per cent and is a two-year fix at 4.39 per cent. 

The two lifetime trackers have LTVs of 75 per cent and 65 per cent, and are 4.2 per cent and 4 per cent respectively.

All three products come with a 1.5 per cent fee and again rent is calculated at 125 per cent at 5 per cent.

All five products are available from today (18 January).

The 80 per cent LTV products for both individuals and limited company borrowers have a maximum loan size of £500,000.

The maximum loan size for up to 75 per cent LTV is £750,000, and up to 70 per cent LTV is £1m. 

Bob Young, chief executive of Fleet Mortgages, said: "We’ve seen over the course of the last 12 months the increase in demand for limited company products, particularly when it comes to new purchases, however many landlord borrowers continue to hold their existing properties in their individual names and it’s therefore important that we continue to offer competitive products in this space."

Jane King, a mortgage adviser with Ash Ridge, said: "The rates are certainly competitive at the higher LTV but not at 65 per cent where I can get a tracker with Metro Bank for  3.24 per cent although not a lifetime tracker.

"However as usual with buy-to-lets the fees are chunky. My difficulty is finding an application that would fit at 80 per cent under the new Prudential Regulation Authority rules on rental income cover. 

"I am struggling to do 75 per cent LTV at the moment so I would expect there to be limited demand for the higher LTV rates."

james.fernyhough@ft.com