Fleet Mortgages has cut rates across its standard, limited company and HMO ranges, and introduced an increase to its maximum loan sizes.
The buy-to-let lender has also removed the £250k lending band on relevant products and brought in free valuations for standard and limited company borrowers on properties up to £500k.
Fleet has also brought back 75% LTV options within its HMO range, priced at 3.79% for a two-year fix and 3.99% for a five-year fix.
The rate cuts include the following:
- Standard and limited company: two-year fixes at 60% LTV down to 3.19%, 70% LTV down to 3.29% and 75% LTV down to 3.49%; five-year fixes at 60%/70%/75% (non-pay rate) are down to 3.54%, 3.59% and 3.74% respectively
- Standard and limited company pay-rate products: five-year fixes at 60% and 70% LTV down to 3.69% and 3.75% respectively
- HMO: five-year fixes at 60% LTV down to 3.79% and 70% LTV down to 3.84% – a cut of 10 basis points.
Maximum loan sizes at 70% LTV have been increased to £1.5m for standard and limited company products, and £1m for 75% LTV, while LTVs for HMOs has been increased to 75% also with a maximum loan size of £1m; 70% HMO LTV products have increased their maximum loan size to £1.5m.
Fleet said that the cuts to product rates had been made as a result of increasingly positive discussions with its funders and it would continue to look at both LTV and criteria as it appraised market conditions and borrower demand, especially in light of the recent changes to stamp duty.
Steve Cox, distribution director at Fleet Mortgages, said: “Surprises are rare in the mortgage and property market, but the government’s recent decision to allow landlords access to the stamp duty ‘holiday’ up until the end of March next year was definitely a pleasant one that few in the market would have anticipated.
“Landlords were already looking at the market conditions post-lockdown as an opportunity to be more acquisitive, and with this stamp duty incentive now in place, we are already seeing a growing level of demand and interest from those who want to add to portfolios and take advantage of the SDLT saving.
“In line with this increased demand and, with the full backing of our funders, we are therefore able to positively change prices across a large number of products, as well as reinstating higher LTV options in the HMO space. Added to this we have increased the maximum loan amount and are offering free valuations to our standard and limited company borrowers up to £500k.
“We anticipate that advisers will be seeing growing interest from their landlord clients in the weeks ahead and we would urge them to review Fleet’s product range and criteria, and to contact us to talk through how we can help their clients add to their portfolios.”
