Buy to let fixes and trackers widen landlord choice

Landlords facing borrowing limits have a further choice of five-year fixed buy to let mortgages offering lower headline rates in return for a 5% product fee.

Fleet Mortgages has introduced the deals across its standard, limited company and HMO/multi-unit freehold block ranges, available up to 75% loan to value (LTV).

The standard and limited company products are priced at 5.24%, with a free valuation for properties worth up to £500,000.

For houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs), the rate is 5.49% and borrowers receive £1,000 cashback.

Landlord mortgage affordability

Steve Cox, Fleet’s chief commercial officer, said: “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.”

He added: “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.”

Fixed mortgage fees

The minimum loan is £75,000, and borrowers can add the product fee to their mortgage at completion, subject to lending criteria.

Fleet said the deals complemented its existing five-year fixes with different fee structures, giving advisers further options when assessing their clients’ borrowing requirements.

The launch follows last month’s introduction of one-year fixes, with the standard and limited company deal priced at 3.49%, carrying a 2.5% fee and including a free valuation on properties worth up to £500,000.

Its one-year HMO/MUFB product is priced at 3.74%, with the same fee and £1,000 cashback, while both one-year options are available up to 75% LTV.

Tracker mortgage options

Meanwhile, LendInvest has launched buy to let tracker mortgages with a 4% product fee.

The range covers standard properties, small HMOs, small multi-unit freehold blocks and holiday lets.

Borrowers can access up to 75% LTV, with no early repayment charges.

The lender said the products allowed borrowers to move to another mortgage in its buy to let range in future.