BTL and specialist lender, Fleet Mortgages, has announced that it has cut rates across its three core ranges and extended the end dates of all such products.
The lender confirmed that from today it has dropped the price of seven fixed-rate products across its standard, limited company and HMO ranges.
These cuts have been made despite recent increases in SWAP rates and the lender is able to do this because of the unique funding methods it employs. Fleet Mortgages is partnered with a number of asset managers to deliver its funding.
In its standard range, the changes are two-year fixed rate (75% LTV) cut 10 basis points to 2.99% - the product has a maximum loan of £200k. Five-year fixed rate (75% LTV) cut 10 basis points to 3.75% and five-year fixed, pay-rate (75% LTV) also cut 10 basis points to 3.99% - this product has an ICR of 135% at the initial rate, with a 1% fee.
In its limited company range, the changes are five-year fixed rate (65% LTV) cut 10 basis points to 3.79%.Five-year fixed rate (75% LTV) cut 10 basis points to 3.89% and five year fixed, pay rate (75% LTV) cut 10 basis points to 3.99% - again this product has an ICR of 125% at the initial rate, with a 1.5% fee.
In the HMO range, Fleet has cut its five-year fixed rate (75% LTV) by 10 basis points down to 4.09%
All Fleet Mortgages’ fixed-rate end dates have also been changed, with two-year fixes now offered up to 30th June 2020, and five-year fixes to 30th June 2023.
The move to cut rates on its fixed-rate products follows Fleet Mortgages recent decision to no longer require a floating charge on its limited company cases. The lender believes this will provide a number of benefits to advisers and their clients who are purchasing or remortgaging properties held in a limited company vehicle.
Fleet says this will mean a significant simplification for all such cases especially when it comes to limited company lending where the client holds mortgage properties with multiple lenders.
Fleet Mortgages is a specialist buy-to-let lender with products distributed via intermediaries only. It is specifically focused on providing mortgages to portfolio and professional landlords and recently announced that two-thirds of its purchase mortgage applications were now via limited companies.
Bob Young, Chief Executive Officer of Fleet Mortgages, commented: “We’re happy to announce we’re kicking off the post-Easter period with a selection of 10 basis point price cuts across seven of our fixed-rate products. In this instance we’re able to cover off all three core ranges – standard, limited company and HMO – with these rate reductions, meaning that all types of landlord and investor borrowers should benefit in this instance. At the moment SWAP rates are on the rise, however because we are uniquely funded we are able to fly in the face of this and cut our prices.
Added to this we have extended our end dates across all fixed-rate products and, with our recent decision to drop our requirement for a floating charge on limited company cases, we are responding to the needs of both advisers and their clients in this changing buy-to-let marketplace.
As always, the importance of dealing with a specialist lending partner in this part of the market cannot be under-estimated, and particularly in terms of the growth in limited company applications and our commitment to the professional and portfolio landlords, Fleet continues to show its dedication and expertise in buy-to-let. Our price cuts are live now and we are looking forward to hearing from interested advisers to see how we can help them develop their advice offering and provide the right products for their landlord clients.”