Fleet cuts mortgage rates on five-year fixes

The rate cuts include 20 basis point (bps) cuts across its 70 per cent loan to value (LTV) product now at 5.14 per cent and 75 per cent LTV at 5.54 per cent.

The provider is offering a green five-year fix product on properties with an EPC rating between A-C, available up to 75 per cent LTV, which it has cut to 5.44 per cent.

The standard/limited company five year fix at 70 per cent LTV comes with a five per cent fee, while all other five-year products come with a three per cent fee.

Interest coverage ratio

All products come with an interest coverage ratio (ICR) based on the product’s pay rate, calculated at 125 per cent for basic-rate taxpayers and 145 per cent for higher-rate tax payers.

Fleet also continues to offer landlord borrowers a £1,000 cashback payment if they improve the EPC level of the property to a C or above during the course of the initial fixed-rate period.

Steve Cox (pictured), chief commercial officer at Fleet Mortgages, said: “A more certain interest rate environment has many benefits, not least calmer money markets, which in turn gives us further options to make product pricing moves.

He added: “Fleet also of course now offers product transfer options to existing borrowers at the end of their special deals, and together with this keener pricing, we believe advisers have a growing number of more competitively-priced options for their landlord borrowers.

“Given the ongoing movements in the money markets, plus greater levels of competition, we’re actively reviewing all our products and rates, and we anticipate making further announcements on the range in the near future.”

In July 2021, Starling Bank acquired Fleet Mortgages and became the sole funder for its mortgage originations.