Fleet launches fixed-fee buy-to-let range

Fleet launches fixed-fee buy-to-let range

Fleet Mortgages has launched a range of fixed-fee products designed to aid advisers sourcing larger buy-to-let loans.

The fixed-fee options are available in the lender’s standard, limited company and houses in multiple occupation or multi-unit block sectors.

The latest buy-to-let additions include two and five-year fixed options, with a standard two-year fixed rate product available at 3.09 per cent at 75 per cent loan-to-value (LTV) and a fixed fee of £1,999.

A limited company product is also available at a five-year fixed rate of 3.89 per cent at 75 per cent LTV and a fixed fee of £6,250.

The intermediary-only buy-to-let lender recently announced two-thirds of its purchase mortgage applications were now via limited companies.

Fleet Mortgages also reduced the early repayment charges term on its Libor-tracking products from three years down to two.

Bob Young, chief executive at Fleet Mortgages, said he believes the fixed-fee options will be especially beneficial for those who are seeking larger buy-to-let loans.

He said: "We have seen a noticeable uptick in buy-to-let activity in recent months, with  professional landlords in particular seeking to add to portfolios, while also looking at refinance options in order to release capital for further purchases.

"We believe these fixed-fee mortgages will provide greater product choice for landlord borrowers and provide further evidence of our continued specialist focus on the market and our increased appetite to lend."

David Hollingworth, associate director of communications at London & Country Mortgages, said fixed fees are increasingly popular with landlords as they seek out the best possible value for them in a new deal.

He said: "Offering the option of a fixed fee as well as percentage fees helps to give landlords choice and the chance to tailor their product choice to their individual circumstances. 

"The fixed fees are still relatively chunky but the landlord will be able to weigh up what works best for them in terms of a percentage fee at a slightly lower rate or a fixed fee.

"Fleet’s rates do not trouble the lowest on the market but criteria plays a big part in its proposition with the more specialist areas covered and lower rental criteria a key attraction."