The specialist buy-to-lender has given brokers until 5pm on 1 April to submit full mortgage applications using the pay rate before the cuts are made.
Landlords with a loan-to-value of 65% can currently take out a mortgage of up to £1m using a pay rate of 4.09% for a five-year fixed rate and 3.98% for lifetime trackers to calculate the amount of rent needed to cover the mortgage payment.
The maximum loan, at present, falls to £750,000 for landlords looking for a 75% LTV mortgage using pay rate.
Andrew Montlake, director, Coreco, said this was a significant change by Fleet. “Most buy-to-let loans, especially in London and the South East, are above £250,000 so it leaves even less choice than before for London landlords,” said Montlake.
Chief executive of Fleet Mortgages Bob Young (pictured) said: “We’ve been getting a lot of business on our pay-rate products and we want to maintain our superb customer service levels. So, rather than pull the product range altogether, we have decided to reduce the maximum loan size to support our BDMs in the Midlands, North and South West.
“This is a simple case of introducing changes to regulate our business flows either by repricing products, or in this case, changing criteria.”
Current pay-rate products will be removed for decision in principles from 5pm on 30 March. Pay-rate products with the maximum loan of £250,000 are available today.
