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Fleet Mortgages ups maximum loans, cuts minimum ages and introduces 80% LTV range

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  • 13/05/2019
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Fleet Mortgages ups maximum loans, cuts minimum ages and introduces 80% LTV range
Fleet Mortgages has introduced 80 per cent loan to value (LTV) products across individual, limited company and Houses in Multiple Occupation (HMOs) ranges as well as a number of criteria changes.

 

These products will be available to borrowers for two- and five-year deals.

The lender has also introduced a number of criteria enhancements, including increasing its 65 per cent LTV portfolio lending size from £4m to £5m.

Minimum income requirements for a borrower have been cut from £25,000 to £15,000 and the minimum primary applicant age reduced from 25 to 21 years old.

 

Product launch

Within the standard range, new deals include an 80 per cent LTV five-year fix at 3.99 per cent and a two-year fix at 3.69 per cent. This offer has a 1.25 per cent product fee and free valuations for properties valued up to £500,000.

In the lender’s limited company range, a two-year 3.69 per cent and five-year 4.19 per cent deal with a 1.5% fee have been introduced – both provide a free valuation for properties valued up to and including £500,000 after which a discounted valuation fee will apply.

All standard and limited company products are offered with a rental calculation of 125 per cent at 5.5 per cent.

HMO products are offered with a rental calculation of 125 per cent at 6.12 per cent. All products come with stepped early repayment charges.

 

Next stage in development

Steve Cox, distribution director of Fleet Mortgages (pictured), noted that the introduction of these 80 per cent LTV mortgages was the next stage in its product development since returning to market last month.

He said: “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 multi-unit blocks (MUBs) in order to access greater levels of rental yield.”

Cox added that the lender would continue to support borrowers owning properties in their individual names and anticipated that having a 20% deposit requirement can help ease new landlords into the sector.

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