"The introduction of these 80% LTV mortgages... is the next stage in our product development since our return to market last month."
Two-year fixed rates start from 3.69% and five-year rates from 3.99% for standard and limited company products. Instead, borrowers can opt for a £2,999 fee with two-year fixed rates from 4.09% and five-year fixed rates from 4.29%.
HMO rates start from 4.29% fixed for two years and 4.39% fixed for five years.
All standard and limited company products are offered with a rental calculation of 125% at 5.5%, while HMO products are offered with a rental calculation of 125% at 6.12%.
The lender is also introducing a number of criteria enhancements, such as increasing its 65% LTV portfolio lending size from £4m to £5m; dropping minimum income requirements for a borrower down from £25,000 to £15,000; and reducing the minimum primary applicant age from 25 to 21 years old.
Steve Cox, distribution director at Fleet Mortgages, commented: “The introduction of these 80% LTV mortgages, alongside our core range of 65% and 75% LTV products, is the next stage in our product development since our return to market last month. We’ve been over the moon with the response to our product launch and, having listened to further feedback from our intermediary partners, we’re now able to offer both 80% LTV options and make some further criteria tweaks which should meet client requirements in terms of maximum loan size, portfolio size, and minimum borrower age.
“Professional and portfolio landlords are increasingly looking to add to portfolios via limited companies and are seeking to purchase both HMOs and MUBs in order to access greater levels of rental yield. However, as a specialist lender it’s also important to recognise that many borrowers own properties in their individual names and will continue to so for the duration, which is why we were keen to ensure these 80% LTV products were available across all three core areas. Plus, we anticipate that new landlords will look to make their mark and having a 20% deposit requirement can help ease them into the sector."
