The green mortgages are open to landlords looking to purchase or remortgage properties with an energy performance certificate (EPC) rating between A to C.
The products are fixed for five years and available at 75 per cent LTV. The pricing is 10 basis points lower than Fleet’s equivalent deals in its standard and limited company/LLP offering at 4.85 per cent, and its houses in multiple occupation (HMO) or multi-unit freehold block (MUFB) range at 4.99 per cent.
The relaunched 65 per cent LTVs include a standard and limited company/LLP product at 4.85 per cent and a HMO/MUFB deal with a rate of 4.99 per cent.
Rising two-year swap rates
The lender said as two-year swap rates had “increased rapidly” and made five-year fixes cheaper, it would temporarily withdraw its two-year fixed rates.
Fleet Mortgages is currently only offering five-year fixes at 65 per cent, 75 per cent and 80 per cent LTV, seven-year fixes at 75 per cent LTV, tracker mortgages at 75 per cent LTV and the recently launched five-year fixed green mortgages at 75 per cent LTV.
Steve Cox (pictured), chief commercial officer at Fleet Mortgages, said: “We are very pleased to be making our first entry-level foray into the provision of green mortgages for landlord borrowers, who are increasingly looking for properties with EPC levels between A and C in order to meet any future requirements placed upon them in this area.
“This is an entry point for us when it comes to green activity and we’ll continue to look at the ways and means by which we can support landlords as they seek to deliver greater levels of energy efficiency within the housing stock of the private rental sector.”
Cox said while the lender was able to come back into the 65 per cent LTV lending tier, “as swap rates have rocketed and as the market for two-year fixes has diminished, we have made the decision to temporarily withdraw our two-year products.”
He added: “At present, to be active in this space would mean pricing these products at levels which would simply be unattractive to advisers and their landlord clients, especially given that five-year money is far cheaper than two-year at present.
“We’ve therefore decided to stick with five- and seven-year products alongside our trackers until a time when the market shifts, and it makes sense to bring back competitively-priced two-year fixes.
“Overall, we have boosted the resource within our operation considerably over the summer and, with a focus on improving service levels, our current service metrics are hugely positive allowing us to work quickly on the cases that advisers place with us.”
