Buy-to-let and specialist lender Fleet Mortgages has revamped its entire product range, cutting rates on 12 out of its 13 products.
In the standard range, the 2-year fixed rate at 75% LTV, which has a maximum loan of £200,000, was reduced by 0.10% to 2.89% and its 5-year fixed rate at 75% LTV was reduced by 0.06% to 3.69%.
The 5-year fixed pay-rate 75% LTV was also reduced by 0.10% to 3.89% – this product has an interest coverage ratio (ICR) of 135% at the initial rate. LIBOR tracker 75% LTV reduced by 0.45 to 3.4%.
Chris Dawe, sales director at LDNfinance, said: “These are very positive amendments from a lender that has a sensible and innovative approach to underwriting in the buy-to-let market. It’s clearly showing an appetite to support landlords and potential new investors.”
Bob Young, chief executive officer of Fleet Mortgages, said: “Fleet Mortgages is very pleased to be launching these new products today across our three core areas which see significant rate reductions.
“We believe this highlights our commitment to the buy-to-let sector and our ongoing appetite to lend to quality borrowers in this space.
“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.
“Our average stressed ICR for mortgage applications last month was 151% while our debt-service-cover-ratio – a simple measure that works out how many times rent covers mortgage payments at the actual pay rate – was 219% for all mortgage applications received; indeed this figure has been in excess of 200% for the last number of years.”
Fleet’s limited company range has also seen rate reductions of between 0.10% and 0.45% and the lender is now not offering 65% LTV products.
The rest of the new range includes: 2-year fixed rate 75% LTV was cut by 0.2 to 3.39%, 5-year fixed rate (75% LTV) has been cut by 0.1 to 3.79%.
The 5-year fixed, pay rate 75% LTV was reduced by 0.1 to 3.89% – this product has an ICR of 125% at the initial rate and lifetime LIBOR tracker at 75% LTV was reduced by 0.45 to 3.4%.
And Fleet cut prices across its HMO product range. This includes its: 2-year fixed rate (65% LTV) being by 0.1 to 3.49%, its 2-year fixed rate at 75% LTV, its 2-year fixed rate (75% LTV) was cut by 0.1% to 3.59% and its 5-year fixed rate at 75% LTV was cut by 0.2 to 3.89%.
Its lifetime LIBOR tracker at75% LTV was reduced by 0.35 to 3.6% – this product has an ICR of 125% at 5%.
Fees on the standard range remain at 1%; fees on the limited company range are 1.25%, except for the pay rate product which is 1.5%; and fees on the HMO range remain at 1.5%. All 2-year fix end dates have been extended to 30th September 2020, with the 5-year fixes at 30th September 2023.
Young added: “Interestingly, the latest UK Finance figures for May this year show that 5% of all buy-to-let mortgages had an ICR of less than 120%, significantly below Fleet’s levels.
“Advisers and their clients can therefore rest assured that they will be dealing with a focused and highly experienced lender that works to the highest standards and is committed to writing quality business that is competitively priced and affordable to the borrower.”
He said: “We continue to grow our operation with a range of in-the-field and telephone BDMS available to advisers, plus access to dedicated and experienced underwriters.
“We are also soon to roll out a series of ‘breakfast meetings’ to help brokers understand limited company lending, the pitfalls and the opportunities.
“Coupled with this advisory support and our 24-hour turnaround on all post received, plus five days on average for our application/valuation service, which is certainly above the norm, we believe Fleet is leading the way in this sector and we will continue to put advisers at the heart of our business and deliver what they require.”