Specialist buy-to-let lender, Fleet Mortgages has launched its first buy-to-let green mortgages and reintroduced 65 per cent loan-to-value products across its core ranges.
Its green products are now available as five-year fixes available at 75 per cent LTV to landlords who purchase or remortgage properties with an EPC rating of C or higher.
The products come with a 10-basis points reduction off Fleet’s core five-year fixes with both standard and limited company offered at 4.85 per cent, and HMO/multi-unit freehold block offered at 4.99 per cent.
Fleet chief commercial officer, Steve Cox 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”.
Cox said the lender will continue to look for ways to support landlords as they seek to deliver greater levels of energy efficiency within the private rented sector.
Fleet has also introduced product options at 65 per cent LTV across its three core ranges - standard, limited company and LLP, HMO and multi-unit freehold block.
Rate withdrawal
The lender has also temporarily withdrawn its two-year fixed-rate products from the market.
It said this is as a result of two-year swap rates having increased rapidly, and due to the uncompetitive price situation where five-year products are currently cheaper than two-year.
“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,” Cox said, adding that this will be the case until a time when the market shifts.
For now the lender currently offers five-year fixes at 65, 75 and 80 per cent LTV, seven-year fixes at 75 per cent LTV, its new five-year green mortgages at 75 per cent LTV, and tracker products at 75 per cent LTV.
Fleet recently announced the expansion of both its head office and its satellite operation in Cardiff and said a range of new personnel have joined the lender, particularly in its underwriting department.
In July of last year, Fleet was purchased by Starling Bank for £50mn as part of its plan to expand its lending and move into mortgages as an asset class.
More recently, Starling Bank agreed to buy a loan portfolio from specialist lender Masthaven worth about £500mn.
As well as buying Masthaven, Starling also reportedly had its eye on specialist lender Kensington’s £1bn mortgage book, which is currently in the process of being sold.
Having made its first profit in October 2020, Starling has previously said it is eyeing a potential initial public offering as early as 2023.
jane.matthews@ft.com
