Fleet Mortgages reduces rates on five-year fixed products

Fleet Mortgages has lowered its rates on all five-year fixed products for standard and limited company borrowers.

The rate cuts, effective from 8 November, are 20 basis points (bps) across the board.

The products affected by the rate reductions are:

• Standard/limited company borrowers – five-year fixed-rate at 70% LTV now at 5.14% and 75% LTV at 5.54%
• Green five-year fix product – for properties with an EPC rating between A-C – cut to 5.44%, available up to 75% LTV.

The standard/limited company five-year fix at 70% LTV has a 5% fee, while the other five-year products have a 3% fee.

All products have an interest coverage ratio (ICR) based on the product’s pay rate, calculated at 125% for basic-rate taxpayers and 145% for higher-rate taxpayers.

‘Options to make product pricing moves’

Fleet’s chief commercial officer, Steve Cox, said: “A more certain interest rate environment has many benefits, not least calmer money markets, which in turn gives us further options to make product pricing moves.

“Since the Bank of England’s decision to hold Bank Base Rate was announced last week, we’ve seen some further downward movement in swaps, and coupled with the strength of our own funding position, we’ve been able to make these price cuts across both our standard and limited company five-year fixes, plus our specific Green five-year fixed-rate option.”

He adds: “Fleet also of course now offers Product Transfer options to existing borrowers at the end of their special deals, and together with this keener pricing, we believe advisers have a growing number of more competitively priced options for their landlord borrowers.”

Specialises in buy to let mortgages

The lender, which specialises in buy to let mortgages, also offers a £1,000 cashback payment to landlords who improve the EPC level of their property to a C or above during the initial fixed-rate period.

Fleet also says its current service levels are 48 hours for assessment of documents and turnaround of valuations, and 24 hours for DIP reviews.

Fleet Mortgages’ product guide and full list of lending criteria can be viewed by visiting its website.

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