Fleet Mortgages launches green buy-to-let mortgages



Buy-to-let specialist lender Fleet Mortgages has launched green buy-to-let mortgages for those buying or remortgaging properties with an EPC level between A and C.

There are 5-year fixes for standard and limited company landlords at 4.85%, while HMO/MUFB products are offered at 4.99%. Both of these represent a 0.10% reduction from the core range.

Fleet has also reintroduced product options at 65% LTV, with standard and limited company/LLP products available at 4.85%, and HMO/MUFT at 4.99%.

The lender said that as a result of two-year swap rates having increased rapidly, and due to the uncompetitive price situation for this term where five-year products were currently cheaper than two-year, it was temporarily withdrawing its two-year fixed-rate products from the market.

As a result, it is now offering five-year fixes at 65%, 75% and 80% LTV, seven-year fixes at 75% LTV, the new five-year Green mortgages at 75% LTV, plus Tracker products at 75% LTV.

Steve Cox, chief commercial officer at Fleet Mortgages, said: “We are very pleased to be making our first entry-level foray into the provision of Green mortgages for landlord borrowers, who are increasingly looking for properties with EPC levels between A and C in order to meet any future requirements placed upon them in this area.

“This is an entry point for us when it comes to Green activity and we’ll continue to look at the ways and means by which we can support landlords as they seek to deliver greater levels of energy efficiency within the housing stock of the private rental sector.”

He added: “We’ve also been able to reintroduce our 65% LTV products across all three core ranges, however as swap rates have rocketed and as the market for two-year fixes has diminished, we have made the decision to temporarily withdraw our two-year products.

“At present, to be active in this space would mean pricing these products at levels which would simply be unattractive to advisers and their landlord clients, especially given that five-year money is far cheaper than two-year at present.

“We’ve therefore decided to stick with five- and seven-year products alongside our trackers until a time when the market shifts, and it makes sense to bring back competitively-priced two-year fixes.”

Fleet recently expanded both its head office and its satellite operation in Cardiff with a range of new personnel joining the lender in a wide variety of roles, particularly in its underwriting department.

Over the summer, Fleet said its service level had improved significantly to a point where it is currently offering 48 hours to assess all documents, same-day DIP reviews, and valuation turnarounds within 48 hours.

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