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Fleet launches no-completion-fee deals; MFS re-adds two- and three-year fixes – round-up

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  • 09/02/2024
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Fleet launches no-completion-fee deals; MFS re-adds two- and three-year fixes – round-up
Fleet Mortgages has released limited edition five-year fixed buy-to-let (BTL) products with no completion fees.

These are available across its standard, limited company and houses in multiple occupation (HMO)/multi-unit block (MUB) ranges. 

The products are at 75 per cent loan to value (LTV) with a rate of 5.59 per cent for standard and limited company borrowers or 5.93 per cent for HMO and MUB borrowers. 

Fleet, which last year lowered two- and seven-year fixes, said the zero-completion-fee feature would offer borrowers a “considerable, upfront saving”. There is a £199 booking fee as well as free standard valuations for standard and limited company borrowers against properties with a value up to £500,000.  

 

Equivalent to a sub-five per cent option

Steve Cox, chief commercial officer at Fleet Mortgages, said: “Last year, the challenge of a higher-interest-rate environment, and what it required in terms of affordability criteria, meant we saw a large number of lower-rate/higher-fee products being launched. 

“Now that we have seen rates come off those highs, with swap rates stabilising, and a far more competitive rate environment, we wanted to ensure we offered a different set of products that did not come with any completion fee whatsoever.” 

He added: “These three limited-edition five-year fixes offer landlord borrowers a highly competitive rate from the outset, but with no completion fees to pay, meaning they do not have to pay those costs upfront or add the cost of the fee to the loan. 

“Feedback from intermediary partners suggests these offer a strong option, particularly for portfolio landlord clients who are seeking to capital-raise but want to minimise any reduction in the value of their equity.” 

Cox said that, without the fee, the product rates for standard and limited company borrowers were equivalent to a five-year fixed deal with a rate of 4.99 per cent and a three per cent fee. He said this made it a “very strong product offering and one that will mean no initial outlay or the addition of potentially thousands of pounds to the overall loan”. 

He added: “Advisers will clearly have to work with landlord clients to review what option is best for them, but these new products provide them with another route to move down, if the maths can work for the borrower and they would like to benefit from a zero completion fee approach.” 

 

MFS relaunches two- and three-year fixes 

Market Financial Solutions (MFS) has brought back its shorter term fixed rates for BTL mortgages and reduced tracker product pricing.  

The lender has added two- and three-year fixes with no rate stressing. Pricing starts from 4.59 per cent. 

The lender has also cut tracker mortgage rates by between 0.2 and 0.25 per cent. 

Paresh Raja, CEO of MFS, said: “The time is right for us to introduce two-year and three-year fixed products back into our BTL mortgage range. We know that, while they do not want to be locked in for so long, many brokers and borrowers take out five-year fixes due to a lack of an alternative or because they can get a longer-term fix without rate stressing. The fact we are bringing in shorter fixes but without rate stressing will give BTL investors much more control and choice when seeking the right product.  

“Everything we do is designed to empower brokers and borrowers. Our skill, experience and funding lines allow us to provide greater flexibility and optionality, and we’re confident that our expanding BTL mortgage range will remain in high demand in 2024.”  

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