Specialist buy-to-let lender Fleet Mortgages has launched two new pay-rate five-year fixed rate deals, one on its standard range and one for its limited company offering.
Both five-year products are offered up to 75 per cent LTV, and rates are fixed until December 31 2022.
The standard five-year fix is at 3.89 per cent with an ICR of 135 per cent (at 3.89 per cent). The mortgage has a 1 per cent fee.
The limited company deal again offers a five-year fixed rate at 3.89 per cent, but with an ICR of 125 per cent. The fee is 1.5 per cent. With both mortgages the rate reverts to LIBOR plus 4.2 per cent at the end of the fixed term. Currently this would give a pay rate of 4.48 per cent.
Fleet Mortgages chief executive officer Bob Young says: “The big news for the buy-to-let market has not been the increase in Bank Base Rate but the rise in swap rates due to movement in capital markets.
“The good news for advisers and their clients is that there are now some very competitive five-year fixes available, which will provide them with payment certainty over much longer timescales, allowing them to plan ahead with confidence.
“These two new products come with low revert rates in order to cushion the potential for any future rate shock.”
Fleet Mortgages recently reduced fees on many of its limited company products to 1.25 per cent – but this excludes these longer five-year fixes. Its HMO product fees have also fallen from 2 per cent to 1.5 per cent. Fees across its standard range remain unchanged at 1 per cent.
Fleet has recently introduced new ‘service commitments’ for its advisers and portfolio landlords, following the introduction of new PRA guidelines. It has said brokers won’t face additional paperwork nor would clients experience delays due to additional processing.