Fleet’s funders give green light to mortgage rate cuts

Fleet said increasingly positive discussions with its funders had allowed it to make the changes to its pricing.

The lender said it would continue to look at both its loan to value (LTV) limits and criteria as it appraised market conditions and borrower demand, particularly in light of the recent stamp duty holiday.

Standard and limited company two-year fixes at 60 per cent LTV have been cut to 3.19 per cent; at 70 per cent LTV rates are down to 3.29 per cent and at 75 per cent LTV they are down to 3.49 per cent.

Non-pay rate five-year fixes, which use an interest cover ratio (ICR) of 125 per cent at 5.5 per cent, at 60, 70, and 75 per cent LTV are down to 3.54 per cent, 3.59 per cent and 3.74 per cent respectively.

Standard and limited company five-year fixed pay-rate products, which use an ICR of 125 per cent of the product rate, at 60 per cent and 70 per cent LTV are down to 3.69 per cent and 3.75 per cent respectively.

For HMO borrowers five-year fixed rates at 60 and 70 per cent LTV have been cut by ten basis points.

Maximum loans lifted

The specialist buy-to-let lender has also removed the £250,000 lending restriction introduced on some products that were relaunched after the lockdown restrictions were lifted.

Free valuations for standard and limited company borrowers are also available up to £500,000.

Houses of Multiple Occupation (HMO) are now available up to 75 per cent loan to value (LTV), priced at 3.79 per cent for a two-year fix and 3.99 per cent for a five-year fix.

Maximum loan sizes at 70 per cent LTV have been increased to £1.5m for standard and limited company products, and £1m for 75 per cent LTV.

Meanwhile LTVs for HMOs have been increased to 75 per cent with a maximum loan size of £1m. At 70 per cent the maximum loan size is now £1.5m.

Steve Cox (pictured), distribution director of Fleet Mortgages, said: “Surprises are rare in the mortgage and property market, but the government’s recent decision to allow landlords access to the stamp duty holiday up until the end of March next year was definitely a pleasant one that few in the market would have anticipated.

“Landlords were already looking at the market conditions post-lockdown as an opportunity to be more acquisitive, and with this stamp duty incentive now in place, we are already seeing a growing level of demand and interest from those who want to add to portfolios and take advantage of the stamp duty saving.”