In addition, the lender has raised its maximum loan-to-value (LTV) from 70% to 75% and made changes to criteria and pricing.
Fleet chief executive Bob Young (pictured) said, after a “topsy-turvy summer”, the market was beginning to stablise, but predicted lenders would be forced to pull back from the market when the PRA’s changes to underwriting rules come in next year.
He added: “Recent data from HMRC appears to show growing activity and appetite among buy-to-let landlords to purchase and, with a market highly sympathetic at the moment to those who are considering their remortgage options, we believe now is a particularly good time for advisers to be supporting their clients in this area.”
Key changes to the Fleet range include the introduction of two pay rate lifetime tracker products, priced at 3.99% for individuals up to 75% LTV, with a rental calculation of 125% at 3.99%. For limited companies the rate is 4.19% up to 75% LTV with a rental calculation of 125% at 4.19%.
The lender is offering all other limited company and individual products at a rental calculation of 125% at 5%.
Fleet has also cut rates for limited company products and houses in multiple occupation (HMO)/multi-unit block products. For limited companies a two-year fix at 75% LTV is now 3.60% (down from 4.19%) and its five-year fix is 3.99% (previously 4.69%).
For HMO/multi-unit block products Fleet has cut the rate of its two-year fix at 65% LTV to 3.79% from 4.09%. The two-year fix at 75% LTV is now 3.99%, down from 4.29%; and a five-year fixed rate is now available at 4.29% (75% LTV), having previously been 4.99%.
“Demand for buy-to-let lending has begun to improve and we are therefore very pleased to announce the refresh of our product range,” Young added. “Next year’s PRA buy-to-let underwriting changes will force many lenders into pulling back from the market, however, our appetite at Fleet Mortgages for quality lending to quality borrowers will not flag. We believe this new range shows our ongoing commitment to the sector and to supporting the needs of all stakeholders.”
HMOs have been cited as one strategy for investors to take to mitigate the new PRA rules.