Fleet's changes include price cuts of 10bps to all individual buy-to-let tracker products. The 65% LTV product is now priced at 2.47% (LIBOR plus 1.89%), the 75% product is now at 2.87% (LIBOR plus 2.29%) and the 85% product is priced at 3.87% (LIBOR plus 3.29%). The term of these products has also been moved from three years to two years.
All fixed-rate end dates have also been extended to either 30th April 2018 for two-year products, or 30th April 2021 for five-year products.
Additionally, Fleet has removed some products including four limited company products based on pay rather than the revert rate and two 80% LTV lifetime trackers for both individual and limited company borrowers.
The new range includes:
- 2.89% two-year fix at 65% LTV with a fixed £500 fee – maximum loan size of £250k.
- 2.99% two-year fix at 75% LTV with a 1% fee.
- 2.47% two-year tracker at 65% LTV with a 1% fee.
- 4.17% lifetime tracker at 75% LTV for limited company borrowers with a 1.5% fee.
- 4.29% two-year fix at 75% LTV for HMO purchasers/remortgages, with a 2% fee.
Mortgage Trust's new range includes a 2 year fixed rate at 3.05% available up to 75% LTV and 3.45% at 80% LTV. The range also provides a 5 year fixed rate product at 3.70% - available up to 75% LTV.
Mortgage Trust and Paragon Mortgages are also increasing their interest coverage ratio to 5.35%, for single self-contained property applications. HMO and limited company applications for Paragon Mortgages have no change to the ICR calculation.
Bob Young, Chief Executive Officer of Fleet Mortgages, commented:
“We continue to look at the evolution of our product range, in light of feedback from our intermediary partners and the changing nature of the buy-to-let market in general. This is why we have kicked off the new year with a number of product range changes, focusing on price cuts to our tracker products for individual buy-to-let borrowers and moving these from three to two-year terms. We’ve also extended our two and five-year fixed rate terms out to the end of April and cut a small number of products based on pay rate.
“There is a high level of interest and anticipation about how the buy-to-let market will unfold, during this first quarter and into the rest of the year. It seems inevitable that we will see strong business levels in this first three-month period but my opinion is that we will maintain a steady course throughout the rest of the year. While the stamp duty increases from April, and the implementation of the tax relief changes from next year, are clearly not positive moves for the sector we firmly believe that the long-term attractiveness of buy-to-let investment and the underlying demand for private rental housing will remain, particularly against a backdrop of ongoing low housing supply.
“What we are likely to see is a move towards greater numbers of landlords utilising limited company structures in order to house and add to their portfolios; indeed we are already seeing this and Fleet Mortgages is in a very strong position to meet this demand as one of the few lenders currently offering such products. Any advisers therefore looking at the needs of their landlord clients should certainly contact the Fleet Mortgages sales team to see how we can support them in finding their finance solutions.”
John Heron, Mortgage Trust's Director of Mortgages, said;
“Our refreshed Mortgage Trust product range is designed to give intermediaries as much variety as possible – whilst maintaining our competitive edge and high level of customer satisfaction.
“We already have market leading low levels of arrears on our loan book but, in addition to maintaining the matrix approach to assessing affordability we already have in place, we are also moving to increase our minimum interest coverage ratio - building further sustainability into our loan book.”
