Specialist buy-to-let lender Fleet Mortgages has launched 80% loan-to-value products across the three core areas of its product range: individual, limited company and HMOs.
The 80% LTV products will be available to borrowers for both 2 and 5-year deals.
The lender has also made criteria changes including: increasing its 65% LTV portfolio lending size by £1m from £4m to £5m; dropping minimum income requirements for a borrower down from £25,000 to £15,000; and reducing the minimum primary applicant age from 25 to 21 years old.
Steve Cox, distribution director of Fleet Mortgages, said: “The introduction of these 80% LTV mortgages, alongside our core range of 65% and 75% LTV products, is the next stage in our product development since our return to market last month.
“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% LTV options and make some further criteria tweaks which should meet client requirements in terms of maximum loan size, portfolio size, and minimum borrower age.
“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 so for the duration, which is why we were keen to ensure these 80% LTV products were available across all three core areas.
“Plus, we anticipate that new landlords will look to make their mark and having a 20% deposit requirement can help ease them into the sector.
“Overall, in an increasingly competitive market, we believe Fleet Mortgages has the pricing, product range, criteria and service levels to meet intermediaries’ needs and we would urge anyone considering their client options in this space to contact us, or their BDM, to see how we can support them.”
In its standard range there’s a 2-year 3.69% product and 5-year 3.99% mortgage, with a 1.25% fee and free valuation for properties valued up to £500,000, after which a discounted valuation fee will apply.
And there’s a 2-year 4.09% with a fixed £2,499 fee and 5-year 4.09% with a £2,999 fee.
In the limited company range there’s a 2-year 3.69% with a 1.5% fee and 5-year 4.19% products with a 1.5% fee, both with a free valuation for properties valued up to and including £500,000 after which a discounted valuation fee will apply. There’s also a 2-year 4.09% and 5-year 4.29%, both with a £2,999 fee.
In the HMO range there’s a 2-year 4.29% and 5-year 4.39% products with a 1.5% fee; 2-year 4.39% and 5-year 4.49%, both with a £2,999 fee.
All standard and limited company products are offered with a rental calculation of 125% at 5.5%; HMO products are offered with a rental calculation of 125% at 6.12%. All products come with stepped early repayment charges.