Fleet Mortgages has launched a series of fixed-fee buy-to-let mortgages to complement its existing product range.
The new deals offer products in Fleet Mortgages’ three core sectors: standard, limited company and HMO/multi-unit block. The lender believes it will specifically help those advisers sourcing larger buy-to-let loans.
Both two and five-year fixed-fee products are now available. Fleet has also introduced new two-year fixed rate products, with an increased maximum loan size of £250,000, for both standard and limited company borrowers.
The lender is also reducing its early repayment charges term on its LIBOR-tracking products from three years down to two.
Highlights of the new fixed-fee product range include a two-year fixed rate of 3.09 per cent at 75 per cent LTV with a fixed fee of £1,999 and maximum loan size of £250,000. Another option is fixing for two years at 3.49 per cent with a fixed fee of £4,999 and no maximum loan size.
Limited companies can fix for two years at 3.09 per cent at 75 per cent LTV with a fixed fee of £2,499 and maximum loan size of £250,000. The rate is 3.49 per cent and fee £6,250 with no maximum loan size.
HMO landlords can fix for two years at 3.59 per cent at 65 per cent LTV with a £7,499 fixed fee, or at 3.69 per cent at 75 per cent LTV with a £7,499 fixed fee.
The fixed-fee products sit alongside the rest of Fleet Mortgages’ range with a percentage fee structure in place. Fees on the standard range remain at 1 per cent; fees on the limited company range are 1.25 per cent, except for the pay rate product which is 1.5 per cent; and fees on the HMO range remain at 1.5 per cent.
For all standard and limited company products – except those offered at pay rate – Fleet Mortgages operates an interest coverage ratio of 125 per cent at 5 per cent, regardless of tax rate.
Fleet Mortgages chief executive officer Bob Young (pictured) says: “At Fleet we are always looking to provide our adviser partners and their clients with a range of different product options in order to find the right one for them. The introduction of this new fixed-fee range to complement our existing percentage-based fee product offering does just that, and we believe it will be especially beneficial for those who are seeking larger buy-to-let loans.
“We have seen a noticeable uptick in buy-to-let activity in recent months, with professional landlords in particular seeking to add to portfolios, whilst also looking at refinance options in order to release capital for further purchases. We believe these fixed-fee mortgages will provide greater product choice for landlord borrowers and provide further evidence of our continued specialist focus on the market and our increased appetite to lend.”