Specialist buy-to-let (BTL) lender Fleet Mortgages has announced the addition of 80 per cent loan to value (LTV) products across the three core areas of its product range; individual, limited company and houses in multiple occupation (HMO).
The products will available to borrowers for both two and five-year deals, with rates starting at 3.69 per cent for individuals on a two-year deal, 3.99 per cent for five-years and 1.25 per cent fee and a free valuation for properties valued up to and including £500,000. Properties exceeding this amount will benefit from a discounted valuation fee and rates from 4.09 per cent for a two-year deal with a £2,499 fee and 4.09 per cent for five-year with a £2,999 fee.
Limited company customers will be offered rates from 3.69 per cent for two-year deals with a 1.5 per cent fee and a five-year 4.19 per cent product with a 1.5 per cent fee, both with a free valuation for properties valued up to £500,000. Those properties with a value of more than £500,000 will receive a discounted valuation fee, with rates starting from 4.09 per cent and 4.29 per cent for two and five-year deals respectively, both with a £2,999 fee.
For HMO customers, the lender is offering two-year deals from 4.29 per cent and five-years from 4.29 per cent with a 1.5 per cent fee.
The lender is also introducing a number of criteria enhancements including: increasing its 65 per cent LTV portfolio lending size by £1m from £4m to £5m; dropping minimum income requirements for a borrower down from £25,000 to £15,000; and reducing the minimum primary applicant age from 25 to 21 years old.
Commenting on the innovations, Fleet Mortgages Distribution Director Steve Cox 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.”
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