Foundation, Aldermore and Fleet refresh BTL ranges



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Foundation Home Loans, Aldermore and Fleet Mortgages have made changes to their specialist BTL products.

Foundation Home Loans

Foundation Home Loans has revamped its entire BTL range, including rate and fee cuts and a new short-term let product.

All of Foundation’s percentage product fees have been reduced to 1% for two-year fixed-rate options and 1.5% on all five-year F1 and F2 standard property products.

The lender has also trimmed rates across several BTL products, including its HMO 75% LTV five-year fix and large HMO/MUFB 75% LTV five-year option, which are available at 3.44% and 3.54%, respectively.

The rate for its existing short-term let five-year fix — which comes with a 2% product fee — has also been reduced to 3.74%.

In addition, the company has launched a new short-term let five-year fixed-rate product, which comes with a flat fee of £1,495.

It is available at both 65% LTV and 75% LTV, priced at 3.94% and 4.29%, respectively.

George Gee, commercial director at Foundation, said: “We have been able to significantly reduce the product fees across our two- and five-year fixed rates while maintaining and, in many cases, even reducing rates. 

“This new BTL product range with lower percentage product fees is designed to reduce the total cost of the loan for BTL borrowers.”

Aldermore

Aldermore has refreshed its BTL products by reducing rates and introducing new options.

Individual landlords with single residential properties now have access to a two-year fixed-rate offering at 80% LTV, available at 3.88% with a 1.5% product fee, as well as five-year fixes, which are priced at 3.98% at 80% LTV and 3.48% at 75% LTV, both with a 1.5% product fee.

Meanwhile, the products for company landlords with single residential properties include:

  • two-year fixed-rate options at up to 80% LTV, available at 3.88% with a 1.5% product fee, or 3.98% with a £1,999 fee
  • two-year fixed-rate at up to 75% LTV, priced at 3.48% with a £1,999 product fee
  • five-year fixed-rate at 80% LTV, offered at 3.98% (1.5% product fee), 4.08% (£1,999 product fee) or 4.28% (zero product fee) 
  • five-year fixed-rate at 75% LTV, available at 3.48%, 3.58% and 3.78%, with varying product fees (1.5%, £1,999, or no fee, respectively) 

The multi-property range — available to customers submitting two or more properties at the same time on one application — for borrowers with single residential properties is now offered at 3.28% with a 1.5% fee and 3.58% with no product fee, both on five-year fixed terms.

In addition, the lender has updated its range for individual and company landlords with HMOs/MUFBs of up to six bedrooms/units, now available at 3.88% (with a 1.5% product fee) and 3.98% (with a £1,999 product fee) for two-year fixed terms, while the five-year fixes are priced at 3.98%, 4.08% or 4.28%, depending on product fee options.

Lastly, the multi-property range for HMOs and MUFBs of up to six bedrooms/units is offered at 3.68% for two-year fixes with a 1.5% product fee, while the five-year fixed-rate options come at 3.78% and 4.08% for 1.5% or zero fees, respectively.

Aldermore also offers assisted legal fees, free valuation, and no funds transfer fee on remortgages for individual and company landlords with single-unit products, alongside free legal fees for individual landlords.

Jon Cooper, head of mortgage distribution at Aldermore, said: “With so many people evolving their working lives away from offices and into their homes, now more than ever we can see the value a robust and high quality private rented sector plays in the UK housing market

“With the outlook for the economy looking more favourable due to the success of the vaccination programme and the near ending of social distancing restrictions, now is the time many landlords will be considering their future strategies. 

“We’re delighted to announce a wave of new products and better rates to help those landlords, both big and small, realise their future portfolio goals.”

Danny Belton, head of lenders relationships at Legal & General Mortgage Club, commented: “Aldermore’s range refresh is certainly something to be welcomed by advisers and landlords, alike. 

“The reduced rates and increased product choice can only be seen as a step in the right direction, and the timing is great given that many landlords that locked into five-year fixed-rate deals ahead of the introduction of the stamp duty surcharge will now be on the hunt for a new product.”

Fleet Mortgages

Fleet Mortgages has cut prices by up to 15 percentage points across its two- and five-year fixed-rate offerings for its standard, limited company/LLP and HMO/MUB ranges.

Fleet’s standard and limited company suites now offer:

  • two-year fixed-rate options priced at 2.89% (65% LTV) and 3.10% (75% LTV), which come with a rental calculation of 125% at 5.5% and a 1.5% fee
  • five-year fixes available at 3.14% (65% LTV) and 3.24% (75% LTV) with a 1.5% product fee and a rental calculation of 12% at 3.14% and 3.24%, respectively

Meanwhile, the HMO/MUB ranges are now available at:

  • 3.24% (65% LTV) and 3.39% (75% LTV) for two-year fixes, with a rental calculation of 125% at 5.5% and a 1.5% fee
  • 3.43% (65% LTV) and 3.63% (75% LTV) for five-year fixed-rates, plus a 1.5% fee, with a rental calculation of 125% at 3.43% and 3.63%, respectively

The lender has also simplified its two-year fixed-rate offering across all three ranges by removing its 70% LTV products. 

It now offers two-year products at 65%, 75% and 80% LTV for standard and limited company/LLP, and 65% and 75% for HMO/MUB. 

The finance provider also offers lifetime tracker rates with no ERCs across all three suites, while all standard, limited company and LLP products include either free or discounted valuations. 

The product price cuts are the first since the announcement of Fleet’s acquisition by Starling Bank in July this year.

Steve Cox, chief commercial officer at Fleet Mortgages, said: “Activity levels within the BTL sector continue to strengthen and we are very pleased to be able to announce these price cuts across our two- and five-year fixed rates for all three ranges. 

“These changes ensure landlords’ costs are kept to a minimum and advisers have a wide range of product options from Fleet for those seeking to refinance or looking to add to portfolios.”

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