Fleet Mortgage has added 80% LTV products across the three core areas of its product range – individual, limited company and HMOs – and made a number of further criteria changes.
80% LTV products will be available to borrowers for both two- and five-year deals including:
- Standard – two-year 3.69% and five-year 3.99% products with a 1.25% and a free valuation for properties valued up to and including £500k after which a discounted valuation fee will apply; two year 4.09% with a fixed £2,499 fee and five-year 4.09% with a £2,999 fee.
- Limited company – two-year 3.69% with a 1.5% fee and five-year 4.19% products with a 1.5%, both with a free valuation for properties valued up to and including £500k after which a discounted valuation fee will apply; two-year 4.09% and five-year 4.29%, both with a £2,999 fee.
- HMO – two-year 4.29% and five-year 4.39% products with a 1.5% fee; two-year 4.39% and five-year 4.49%, both with a £2,999 fee.
All standard and limited company products are offered with a rental calculation of 125% at 5.5%; HMO products are offered with a rental calculation of 125% at 6.12%. All products come with stepped early repayment charges.
The lender is also introducing a number of criteria enhancements, including the following:
- increasing its 65% LTV portfolio lending size by £1m from £4m to £5m;
- dropping minimum income requirements for a borrower down from £25k to £15k;
- reducing the minimum primary applicant age from 25 to 21 years old.
Steve Cox, distribution director of Fleet Mortgages, said: “The introduction of these 80% LTV mortgages, alongside our core range of 65% and 75% LTV products, is the next stage in our product development since our return to market last month. We’ve been over the moon with the response to our product launch and, having listened to further feedback from our intermediary partners, we’re now able to offer both 80% LTV options and make some further criteria tweaks which should meet client requirements in terms of maximum loan size, portfolio size, and minimum borrower age.
“Professional and portfolio landlords are increasingly looking to add to portfolios via limited companies and are seeking to purchase both HMOs and MUBs in order to access greater levels of rental yield. However, as a specialist lender it’s also important to recognise that many borrowers own properties in their individual names and will continue to so for the duration, which is why we were keen to ensure these 80% LTV products were available across all three core areas. Plus, we anticipate that new landlords will look to make their mark and having a 20% deposit requirement can help ease them into the sector.
“Overall, in an increasingly competitive market, we believe Fleet Mortgages has the pricing, product range, criteria and service levels to meet intermediaries’ needs and we would urge anyone considering their client options in this space to contact us, or their BDM, to see how we can support them.”