New buy-to-let and specialist lender Fleet Mortgages has started lending.
The intermediary-only lender has now begun accepting applications through its seven-strong distribution channel, which includes The Business Mortgage Company, The Buy to Let Business, L&G Mortgage Club, Mortgages for Business, The Mortgage Trading Centre, Professional & Commercial and Solent Mortgage Services. Fleet Mortgages says will open its distribution to the wider broker market over the course of 2015.
The company revealed its product range last month, which includes a two-year fixed rate individual buy-to-let deal, available to 65 per cent LTV, priced at 2.79 per cent.
Also in its individual buy-to-let range is a 3.29 per cent two-year fixed rate and a 4.29 per cent five-year fixed rate available to 75 per cent LTV, both with a 1 per cent fee.
Fleet also has a two-year fixed rate available to 80 per cent LTV in its individual buy-to-let range, priced at 4.79 per cent, and a three-year tracker priced at 4.19 per cent above Libor. Both products have a 1 per cent fee.
Limited companies have the option of various products between 65 per cent and 80 per cent LTV, with rates starting at 4.39 per cent for a two-year fixed rate and Libor plus 3.99 per cent for a three-year tracker, both at 65 per cent LTV and with a 1.5 per cent product fee.
The lender has four HMO buy-to-let products – two available up to 65 per cent LTV and two to 75 per cent LTV, with rates starting at 5.29 per cent and 5.39 per cent respectively. HMO products carry a 2 per cent fee.
Fleet’s rental income is set at either 125 per cent at the initial rate, 5 per cent or the revert rate, whichever is higher.
It will accept loans for between £25,001 and £750,000. Loans of up to £500,000 are available up to 80 per cent LTV and those of up to £750,000 at up to 75 per cent LTV.
There is a minimum mortgage term of five years and a maximum of 35 years.
The minimum customer age is 25 and the maximum is 75 at the end of the mortgage term.
Fleet Mortgages chief executive Bob Young says: “We have brought this lender to market in record time and are lending at what is a very exciting time for a growing and developing buy-to-let market. Our products focus on areas which we believe are currently underserved, particularly in the limited company and HMO market, and we believe this range should particularly appeal to our target customer, experienced landlords.
“This is a long-term project and we are looking forward to working with the buy-to-let advisory community in order to develop a proposition which meets their needs and those of their clients.”
TBMC chief executive Andy Young says: “Fleet Mortgages has a compelling proposition in the buy-to-let mortgage market and I am sure Bob Young and his management team will grow a very successful business.”