Fleet Mortgages cut rates on all BTL five-year fixes

Fleet Mortgages has announced a significant reduction in rates for all five-year fixed-rate products across its three core ranges: standard, limited company, and HMO/multi-unit block.

The buy to let specialist lender says the move is expected to benefit borrowers seeking long-term stability and competitive rates.

The rate cuts are as follows:

Standard/limited company borrowers:

• Five-year fix up to 70% LTV: 5.34%
• Five-year fix up to 75% LTV: 5.74%
• Green five-year fix (A-C Energy Performance Certificate (EPC) rating) up to 75% LTV: 5.64%.

HMO/MUB borrowers:

• Five-year fix up to 70% LTV: 5.54%
• Five-year fix up to 75% LTV: 5.88%
• Green five-year fix up to 75% LTV: 5.78%.

‘Greater degree of confidence in the future’

Fleet’s chief commercial officer, Steve Cox, said: “With a greater degree of confidence in the future trajectory of rates, and some belief that we may have reached a peak – or at least are close to it – we’ve been able to reflect this in these new product rates, all 20 basis points off their previous levels.

“We’re acutely aware that lowering rates in this way eases some of the affordability challenges facing landlords, and we believe this range of longer five-year fixes will secure some considerable cut-through for those landlord borrowers who are either seeking purchase or remortgage finance.”

Fee structure that varies

The rate cuts are accompanied by a fee structure that varies based on the loan-to-value (LTV) ratio.

For the 70% LTV five-year fixes, the fee is set at 5%, while all other products carry a fee of 3%.

Also, the revert rate for these products is Bank Base Rate plus 3%.

These rate reductions come on the heels of Fleet’s recent launch of product transfer options for existing borrowers.

The suite of product transfer products includes two- and five-year fixed-rate options and offers a fee reduction of 50 basis points compared to new business product ranges.