The buy-to-let and specialist lender Fleet Mortgages has launched fixed-fee mortgages across its standard, limited company and HMO/multi-unit block sectors.
According to Property Master, landlords are currently paying an average of £27 per month more on their mortgages than at the start of 2018. The launch of a new range of fixed-fee mortgages from Fleet could offer savings and greater product choice for landlords seeking a new buy-to-let deal.
No maximum loan limit on two-year fixed rates
The new buy-to-let products include two and five year fixed options. The standard two year fixed rate at 3.49% with a fixed fee of £4,999 and no maximum loan limit, drops to 3.09% if the loan limit is £250,000 or less. The five-year fix at 75% LTV offers a rate of 3.79% with a fee of £4,999, or there is a 3.99% pay-rate product with a £4,999 fee at rental cover of 135% at initial rate.
Limited companies can get a two-year fix at 75% LTV for 3.49% with a fixed fee of £6,250 with no maximum loan size. The rate drops to 3.09% if the loan limit is £250,000 or less. A 5-year fix is available at the same LTV for 3.89% with a fee of £6,250; or there is a pay-rate product at 3.99% with a £6,250 fee, offered at rental cover of 125% at initial rate.
Two-year fixed rates for HMOs are available for 3.59% at 65% LTV or 3.69% at 75% LTV, plus there’s a five-year fix at 3.99% at 75% LTV all available with a fixed fee of £7,499.
Upsurge in buy-to-let mortgage activity
According to Bob Young, Chief Executive at Fleet Mortgages the company has noticed a significant rise in buy-to-let activity in recent months, with professional landlords seeking to expand their portfolios and others exploring refinancing options to release capital for new purchases.
Fixed fee mortgages are becoming increasingly popular with landlords hunting for the best value mortgage deal. While standard variable rates have been most affected by the increase in bank rate rises, the impact on fixed-rate mortgages has varied. The recent government measures have resulted in a general fear that the private rented sector will shrink. Therefore lenders have been using their fixed rate products to incentivise and attract new borrowers in an increasingly competitive market.
It’s welcome news for landlords, who at present have over 1,000 fixed rate mortgages available to them.
