Fleet Mortgages has reduced rates across its entire product range.
The buy-to-let and specialist lender cut rates across 12 of its 13 products and offered new options in its standard, limited company and house in multiple occupation sectors.
Fleet Mortgages reduced rates by up to 45 basis points on its standard range, made cuts of between 10 and 45 basis points on its limited company range and reduced prices across its house in multiple occupation sector by between 10 and 35 basis points.
Bob Young, chief executive of Fleet Mortgages, said the reductions highlighted the company’s commitment to the buy-to-let market and an appetite to lend to quality borrowers in the sector.
He said: "We continue to operate at the very highest standards of responsible lending practices and our ongoing strapline of 'only lending to those that can afford it' remains as true today as it was when we set up the business nearly four years ago."
Fleet Mortgages focuses on the portfolio and professional landlord demographic and recently announced two-thirds of its purchase mortgage applications were through limited companies.
The growth in the use of limited companies has been attributed to higher tax costs because of lower tax relief on mortgage interest payments.
Fees on Fleet Mortgages’ standard and house in multiple occupation ranges remain at 1 per cent and 1.5 per cent respectively and fees on the limited company range re 1.25 per cent, excluding the pay rate product at 1.5 per cent.
The lender has also extended all its two-year fix end dates to 30 September 2020 and five-year fixes to 30 September 2023.
Martin Stewart, director and independent mortgage adviser at London Money, said the drop in rates could be a response to the current position of the buy-to-let market.
He said: "I think the new rates will be attractive for many buy-to-let landlords, particularly those that are purchasing through a limited company where the rates appear quite competitive.
"I wonder whether these rate cuts are symptomatic of the lethargic nature of the buy-to-let sector and the lenders are now having to cut furiously to maintain market share or adapt criteria in order to compete with other specialist lenders.
"The buy-to-let sector appears to be in a constant state of flux at the moment so again the mantra has to be seek good professional accountancy advice before seeking good quality mortgage advice.
"Whether buy-to-let, house in multiple occupation or any other mnemonic is right for you is a moot point until the borrower fully understands the implication of each option."
rachel.addison@ft.com
