Fleet Mortgages has launched new buy-to-let green mortgages and brought back 65% loan-to-value products across its core ranges.
The BTL specialist lender says its new green five-year fixes available at 75% LTV are available to landlords looking to purchase, or remortgage, properties which have an energy performance certificate ranging from A to C.
It says the range takes 10 basis points off the firm’s core five-year fixes, with both standard and limited company/LLP at 4.85%, and houses in multiple occupation/multi-unit freehold blocks at 4.99%.
The lender has also reintroduced products at 65% LTV among its three key ranges, with standard and limited company/LLP products available at 4.85%, and HMO/MUFB at 4.99%.
However, the company adds that because the price of two-year swap rates have “rocketed,” making five-year products cheaper than two-year options, “it was temporarily withdrawing its two-year fixed-rate products from the market”.
As a result, it says, the firm now offers 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.
Fleet Mortgages chief commercial officer Steve Cox says: “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 energy performance certificate levels between A and C in order to meet any future requirements placed on 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.
“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.”
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