Fleet cuts limited company and HMO rates
Sep 27, 2019 ~3 minute read

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Fleet Mortgages, the buy-to-let specialist lender, has today (27th September 2019) announced further rates cuts to its 75% & 80% limited company and HMO products.

Fleet has announced rate cuts to the following products:

  • HMO – two- and five-year 75% LTV fixed-rates have been cut by five basis points. The two-year product is now priced at 3.19% and the five-year at 3.59% - each comes with a 1.5% fee and a rental calculation of 125% at 6.02%
  • HMO – the two-year 80% LTV fixed rate has been cut by five basis points to 3.99%, while its five-year 80% LTV product has been cut by 10 basis points to 4.29%. The products have a fee of 1.5% and a rental calculation of 125% at 6.02%.
  • Limited company – two- and five-year 80% LTV fixed-rates, with free or discounted valuations, have both been reduced by five basis points. The two-year product is now priced at 3.64% and the five-year at 3.89% - both products come with a 1.5% fee and a rental valuation of 125% at 5.5%.

The lender has also extended all its end-dates on two-year fixes to 31st January 2022 and five-year fixes to 31st January 2025, plus it has extended the dates on their stepped early repayment charges.

The rate cuts follow the recent announcement of Fleet Mortgages’ new funding partnership with asset manager, One William Street (OWS) Capital Management. The additional funding with New York-based alternative investment adviser, OWS, brings the amount of money the lender has to lend in the UK buy-to-let market up to £1.4 billion.

Steve Cox, Distribution Director of Fleet Mortgages, commented:

“We constantly review our product pricing to ensure it is as competitive as it can possibly be, and by talking to advisers ensure that it meets their needs and provides their landlord clients with quality finance options. Over the course of the past few years we’ve seen an increase in demand for limited company buy-to-let plus a growing number of landlords seeking to maximise rental yield via HMO and multi-unit block properties. That focus is unlikely to change and therefore it’s imperative that Fleet have both strong pricing and criteria in these two core product areas.

“The recent announcement of our new funding partnership with OWS Capital Management has been warmly received and we are working with both our funders to ensure our criteria meets the needs of the market, and that we have product pricing which reflects the current situation. Any adviser looking at the options available to their buy-to-let clients, or indeed looking to grow their advice proposition for landlords, should certainly contact the Fleet sales team to see how we can support their activity.”

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