Fleet Mortgages has made changes to its product range.
Key changes to the range include price cuts of 10bps to all individual buy-to-let tracker products (65%/75% and 80% LTV). It means the 65% LTV product is now priced at 2.47% (LIBOR plus 1.89%), the 75% product is now at 2.87% (LIBOR plus 2.29%) and the 85% product is priced at 3.87% (LIBOR plus 3.29%). The term of these products has also been moved from three years to two years.
All fixed-rate end dates have also been extended to either 30 April 2018 for two-year products, or 30 April 2021 for five-year products.
The lender says it has listened to its intermediary partners and tidied up the range, removing some products including four limited company products based on pay rather than the revert rate and two 80% LTV lifetime trackers for both individual and limited company borrowers.
The new range contains further product highlights including:
- 2.89% two-year fix at 65% LTV with a fixed £500 fee – maximum loan size of £250k.
- 2.99% two-year fix at 75% LTV with a 1% fee.
- 2.47% two-year tracker at 65% LTV with a 1% fee.
- 4.17% lifetime tracker at 75% LTV for limited company borrowers with a 1.5% fee.
- 4.29% two-year fix at 75% LTV for HMO purchasers/remortgages, with a 2% fee.
Fleet Mortgages has also announced key dates for intermediaries. All products, which are part of the older range, will still be available for decision-in-principles (DIPS) up until the close of business on Tuesday 12 January and full mortgage applications until close of business on Thursday 14 January.
Bob Young, CEO of Fleet Mortgages, said: “We continue to look at the evolution of our product range, in light of feedback from our intermediary partners and the changing nature of the buy-to-let market in general. This is why we have kicked off the new year with a number of product range changes, focusing on price cuts to our tracker products for individual buy-to-let borrowers and moving these from three to two-year terms. We’ve also extended our two and five-year fixed rate terms out to the end of April and cut a small number of products based on pay rate.
“There is a high level of interest and anticipation about how the buy-to-let market will unfold, during this first quarter and into the rest of the year. It seems inevitable that we will see strong business levels in this first three-month period but my opinion is that we will maintain a steady course throughout the rest of the year. While the stamp duty increases from April, and the implementation of the tax relief changes from next year, are clearly not positive moves for the sector we firmly believe that the long-term attractiveness of buy-to-let investment and the underlying demand for private rental housing will remain, particularly against a backdrop of ongoing low housing supply.
“What we are likely to see is a move towards greater numbers of landlords utilising limited company structures in order to house and add to their portfolios; indeed we are already seeing this and Fleet Mortgages is in a very strong position to meet this demand as one of the few lenders currently offering such products. Any advisers therefore looking at the needs of their landlord clients should certainly contact the Fleet Mortgages sales team to see how we can support them in finding their finance solutions.”
