Fleet Mortgages returns to the market
Fleet Mortgages has returned to the mortgage market three months after pulling out over a funding issue.
The buy-to-let lender has secured a long-term funding deal which should see Fleet complete over £1bn in new lending.
Fleet is offering new products across its three core areas – standard, limited company, and HMO/multi-unit blocks (MUB) – with rates starting from 2.69% and a rental calculation of 125% at 5.5% for all taxpayers.
Bob Young (pictured), chief executive at Fleet Mortgages, said: “Ideally, we would liked to have returned to the market sooner but what this process has shown is that there are a growing number of funders who value the quality of the Fleet Mortgages’ proposition and want to work with us over the long-term.
“Exploring these potential options was a no-brainer for the business and we hope to announce further good news in this area very soon.
“We appreciate the patience of all our intermediary partners over the last few months while we have concluded these new funding arrangements, and believe this is a range of products, with enhanced criteria, that will work well for all those with buy-to-let clients.”
Product highlights of the new range include free and discounted valuation products for standard and limited company borrowers available up to 75% LTV. The range includes a 5-year fixed pay rate product at 3.59% with an ICR of 125% at the initial rate.
Free valuations are available for properties valued up to £500,000 on selected standard and limited company 2 and 5-year products, while a discounted valuation fee scale is available for property valued greater than £500,000.
Rates on 2-year products for standard and limited company borrowers start at 2.69% to 75% LTV, 3.09% to 65% LTV and 3.19% to 75% LTV for HMO/MUB borrowers.
Rates on 5-year products for standard borrowers start at 3.39% to 75% LTV, 3.49% for limited company borrowers to 75% LTV, and 3.49% for HMO/MUB borrowers.
Stepped early repayment charges (ERCs) have been introduced across the entire range.
New business submitted from 9 April will qualify for product transfers at expiry of the initial fixed rate period.
Young added: “We are obviously very pleased to be announcing this new product range today, which not only comes with some highly-competitive pricing, but a number of new criteria enhancements that we know will go down well with advisers and their clients.
“Whilst preparing for our return we took time to listen to a broad range of feedback from our intermediary partners which, coupled with this new funding arrangement, has allowed us to introduce options such as product transfers for new borrowers and a new free standard valuation option on certain products.”
Fleet has also introduced a number of enhancements, following feedback from its intermediary partners.
Portfolio lending has been increased up to £4m, with up to 75% LTV available on lending up to £2m, and 65% LTV on lending between £2m and £4m.
With HMO lending, applicants now need two years’ landlord experience. This was previously three years if they were a landlord of a non-HMO property.
For local authority properties outside London and South East, the minimum valuation is now £75,000, down from £100,000.
Assured shorthold tenancies are now accepted up to 36 months, rather than the previous 24 months. All tenancy agreements over 12 months in length must have the standard UK Finance break clause.
Capital-raising for inheritance tax and capital gains tax will now be considered.
Newly-converted freehold properties which have been converted into flats now qualify for loans up to 70% LTV, up from 60%.
Pay rate rental calculations for individual and limited company products now stand at 125% at the initial rate, down from 135%.
Steve Cox, distribution director of Fleet Mortgages, added: “Essentially, for Fleet Mortgages, 2019 starts here.
“What we have tried to do over the last few months is listen to all stakeholders and deliver a range which is not only highly-competitive, but fits the ‘specialist buy-to-let’ brief that many advisers are working too.
“Our new limited edition range continues to offer product options across standard, limited company and HMO/MUB areas and we have utilised our specialist knowledge and experience to change our criteria in a number of ways to help advisers provide the necessary solutions for their clients.
“We are ready and waiting to deal with advisers’ buy-to-let clients and hope this range, and its criteria hits the spot for what we believe is a sustainable and vitally important part of the mortgage market.”