Both products are fixed until December 31st 2022, and offer up to 75% loan to value (LTV), the new products are:
- Standard (individual): five-year fix at 3.89%, with an interest cover ratio (ICR) of 135% at 3.89%; the revert rate is London interbank offered rate (LIBOR) plus 4.2%, which is currently at 4.48%. It comes with a 1% fee;
- Limited company: five-year fix at 3.89%, with an ICR of 125% at 3.89%; the revert rate is LIBOR plus 4.2%, and comes with a 1.5% fee.
Both the 135% ICR for the standard product and the 125% ICR for the limited company product are offered for all tax payer bands.
Purchase or remortgage
Fleet Mortgages chief executive officer Bob Young said: “These two new pay-rate products are offered in both our standard and limited company ranges as we recognise the need to cater for those who are either buying or remortgaging as individuals or through a corporate vehicle.
“Plus they come with low revert rates in order to cushion the potential for any future rate shock,” Young continued.
Last month Fleet reduced its fees and cut interest rates at it seeks to grow its lending.
“As was recently pointed out, the big news for the buy-to-let market has not been the increase in bank base rate but the rise in swap rates due to movement in the capital markets,” said Young.
“The good news for advisers and their clients however is that there are some very competitive and attractive five-year fixes available now which will provide them with payment certainty over a much longer timescale and allow them to plan ahead with some confidence.”