Specialist buy-to-let lender, Fleet Mortgages, has launched a new range of five-year fixed rate products with 5% product fees.
The new products are available up to 75% LTV across Fleet's standard, limited company and HMO/MUFB ranges, and have been introduced to offer lower headline interest rates for landlords who may benefit from a higher-fee product structure.
The new five-year standard and limited company fixed rate products are priced at 5.24% and come with a free valuation on properties valued up to £500,000.
Fleet has also introduced a five-year HMO/MUFB fixed rate, priced at 5.49%, which comes with £1,000 cashback.
All products have a minimum loan size of £75,000, plus the option for the product fee to be added to the mortgage loan at completion, subject to lending criteria.
The lower headline interest rates may help landlords meet interest coverage ratio (ICR) requirements, where rental income and affordability calculations might restrict the amount they are able to borrow.
The new products follow the launch last month of Fleet’s new range of one-year fixed rate buy-to-let mortgages.
Steve Cox, chief commercial officer at Fleet Mortgages, commented: "Affordability continues to be one of the main considerations for landlord borrowers and their advisers, particularly when it comes to refinancing existing properties or securing the borrowing required for further investment.
“We know there are landlords who have perfectly sound rental businesses but are currently finding their borrowing options curtailed by higher affordability assessments, especially when interest rates remain at levels above what they might have anticipated a few years ago.
“By introducing these new five-year fixed rate products with higher fees, we are giving advisers another option to consider, with lower headline rates which may help their clients meet the relevant rental stress tests and potentially access the borrowing they require.
“Whether a landlord is looking for payment certainty, improved affordability or the ability to raise capital for further investment, advisers need access to different product and fee combinations to find the most appropriate solution.
“These new five-year products are another addition to that range and reflect our continued commitment to supporting advisers and landlords in what remains a more complex buy-to-let mortgage market.”
