Buy-to-letMay 14 2019

Fleet Mortgages expands BTL range

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Fleet Mortgages expands BTL range

Buy-to-let specialist lender Fleet Mortgages has added an 80 per cent loan to value range to its product selection after re-entering the market last month.

Those with a 20 per cent deposit will now be able to take out policies with Fleet across its standard, limited company or houses of multiple occupancy ranges.

A standard buy-to-let mortgage at 80 per cent LTV is available at 3.69 per cent for a two-year fix and 3.99 per cent for a five-year fix, both with a 1.25 per cent fee and free valuations for properties worth up to £500,000.

With a £2,499 fee, the standard two-year fixed rate is offered at 4.09 per cent while with a £2,999 fee, the five-year fix sits at 4.09 per cent.

For properties held through a limited company, fees sit at 1.5 per cent for a two-year fix at 3.69 per cent and a five-year at 4.19 per cent. But a flat fee of £2,999 sees the two-year fix priced at 4.09 per cent and the five-year at 4.29 per cent.

Rates on houses of multiple occupancy sit at 4.29 per cent for the two-year product and 4.39 per cent for the five-year, both with a 1.5 per cent fee.

For clients opting for a £2,999 fee, such two-year fixes come at 4.39 per cent and the five-year at 4.49 per cent.

Fleet stated all its standard and limited company products were offered with a rental calculation of 125 per cent at 5.5 per cent, while houses of multiple occupancy were calculated at 125 per cent at 6.12 per cent.

The lender has also changed some of its criteria.

Highlights include increasing its 65 per cent LTV portfolio lending size from £4m to £5m, dropping minimum income requirements for a borrower from £25,000 to £15,000 and reducing the minimum applicant age from 25 to 21 years old.

Steve Cox, distribution director of Fleet Mortgages, said the introduction of 80 per cent LTV mortgages was the next stage in the company’s product development since its return to market last month.

Fleet Mortgages re-entered the mortgage market after it withdrew its entire product range with immediate effect in January.

He said: "We’ve been over the moon with the response to our product launch and having listened to further feedback from our intermediary partners, we’re now able to offer both 80 per cent LTV options and criteria tweaks.

"Professional and portfolio landlords are increasingly looking to add to portfolios via limited companies and are seeking to purchase both HMOs and MUBs in order to access greater levels of rental yield. 

"However, as a specialist lender it's also important to recognise that many borrowers own properties in their individual names and will continue to do so for the duration, which is why we were keen to ensure these 80 per cent LTV products were available across all three core areas."

Commenting on Fleet’s new range, Rachel Lummis, adviser at Xpress Mortgages, said: "It’s great to see that Fleet have launched 80 per cent LTV products, giving landlords more choice when looking for a higher LTV lending. 

"There is very much a demand for 80 per cent products as many landlords look to capital raise to further expand their portfolios often moving to higher yielding properties in various locations in the UK and often choosing housing for multiple occupancy properties for increased rental yields.

"Fleet is a go to lender for specialist applications and they know and are accepting of the more specialist types of properties and for many, Fleet is the lender of choice. 

"This can only be good news for landlords and will bring increased competition in this space."

imogen.tew@ft.com

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