"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."
- Steve Cox, chief commercial officer at Fleet
Specialist buy-to-let lender, Fleet Mortgages, has launched a new range of limited edition five-year fixed-rate products with no completion fees across its three core ranges: standard, limited company and HMO/multi-unit block (MUB).
The new five-year fixes are available up to 75% LTV with rates starting at 5.59% for standard/limited company borrowers and 5.93% for for HMO/MUB borrowers.
Fleet says the zero completion fee products will provide a "considerable upfront saving". There is a booking fee for each product of £199 and a free valuation for both standard and limited company borrowers for properties up to a value of £500,000.
Last month, Fleet cut rates across its entire range of fixed rate products. Rates start at 4.59% for standard and limited company borrowers, and 4.99% for HMO/MUB borrowers. All products come with a revert rate of Bank Base Rate plus 3% and all end dates were extended to the 30th April.
Steve Cox, chief commercial officer at Fleet Mortgages, commented: “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 which did not come with any completion fee whatsoever.
“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.
“Without the fee, these product rates for standard and limited company borrowers are equivalent to the same all-in cost as a 4.99% five-year product with a 3% fee, which makes this a very strong product offering and one which will mean no initial outlay or the addition of potentially thousands of pounds to the overall loan.
“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.”