Fleet Mortgages re-enters buy-to-let lending with £1bn funding line

Fleet Mortgages re-enters buy-to-let lending with £1bn funding line

Fleet Mortgages has re-entered the buy-to-let mortgage lending market after a four-month absence.


The lender announced its return to the mortgage market with a full product range including a limited edition product offering and a number of criteria enhancements.

This comes following the completion of a new long-term funding deal which will see the lender completing more than £1bn in new lending.

Fleet Mortgages said it is also in progressed discussions with additional funders to secure further funding lines that will run alongside the current agreement.

As part of its relaunched range, Fleet is offering new products across all of its three core areas – standard, limited company, and Houses in Multiple Occupation HMO/multi-unit blocks (MUB) – with rates starting from 2.69% and a rental calculation of 125% at 5.5% for all taxpayers.

The lender’s website announced the launch this morning, noting that it was back in the market and accepting new cases.


Criteria enhancements

Fleet Mortgages chief executive officer Bob Young said: “We are obviously very pleased to be announcing this new product range today, which not only comes with some highly-competitive pricing, but a number of new criteria enhancements that we know will go down well with advisers and their clients.

“While preparing for our return we took time to listen to a broad range of feedback from our intermediary partners which, coupled with this new funding arrangement, has allowed us to introduce options such as product transfers for new borrowers and a new free standard valuation option on certain products.

“Ideally, we would liked to have returned to the market sooner but what this process has shown is that there are a growing number of funders who value the quality of the Fleet Mortgages’ proposition and want to work with us over the long-term.

“Exploring these potential options was a no-brainer for the business and we hope to announce further good news in this area very soon. We appreciate the patience of all our intermediary partners over the last few months while we have concluded these new funding arrangements, and believe this is a range of products, with enhanced criteria, that will work well for all those with buy-to-let clients.”


Unexpected withdrawal

The lender had to withdraw with little warning in early January after one of its funders pulled its cash at short notice.

Discussing the situation with Mortgage Solutions in February, Fleet Mortgages CEO Bob Young revealed the lender was in discussions with four funding houses to resume lending, with one of those at a “highly-progressed” stage.

Young admitted it had taken longer than he had hoped to finalise the new line but was positive that a deal would be completed.

He also revealed that he had been given very little notice about the funding withdrawal and so had little option but to stop lending immediately.

“They got put into a position there was no way they could have expected, it was nothing personal or malicious,” he said at the time.

“We would’ve preferred to do it slowly if we had notice, but given the circumstances we handled it the best we could – openly, upfront and honestly.”



Owain Thomas is features and contributing editor of Mortgage Solutions and editor of Specialist Lending Solutions.
He also has experience in the protection, pensions, workplace benefits and HR areas.
Owain has won two Headline Money Awards and the Protection Review’s Journalist of the Year award.

SOURCE: mortgagesolutions

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