The buy-to-let and specialist lender is not impacted by the PRA changes, however, following adviser feedback Fleet Mortgages has reviewed its practice
The buy-to-let and specialist lender is not impacted by the PRA changes, however, following adviser feedback Fleet Mortgages has reviewed its practices in this area. It is simplifying some of its criteria, product offerings, processes and infrastructure in order to provide advisers with a smooth, streamlined portfolio landlord proposition.
Fleet Mortgages has also outlined three key commitments to advisers and their portfolio landlord clients. These are:
- No additional work – a standard application form and Property Asset & Liability Statement remains plus no requirement to key in details of the individual property in the portfolio
- No delays for the client due to additional processing
- Focus on quicker processing times meaning no increases in costs to client.
The lender’s key criteria and underwriting requirements will not change. These include:
- an interest coverage ratio (ICR) of 125% at 5%
- access to experienced portfolio landlord underwriters
- an online system already set up to deal with portfolio landlord lending
- income from rental accepted; unlimited background portfolios with other lenders
- limited company portfolio lending welcomed
- HMO/multi-unit blocks/shared houses accepted
- and up to four applications/directors/shareholders allowed per application.
Fleet Mortgages’ entire product range is open to portfolio landlords. Last month the lender launched new products including two limited editions in its standard range – a 2.59% two-year fixed rate for loans up to a maximum of £200k and a 3.09% two-year fix for loans over £200k.
It also offers a five-year fixed rate product at 3.79%, also in its standard range, and a LIBOR-linked lifetime tracker in its HMO range with a current rate of 3.88% (LIBOR plus 3.6%).
Bob Young, chief executive officer of Fleet Mortgages, commented: “At our launch nearly three years ago, we outlined how Fleet Mortgages was being established to provide portfolio and professional landlords with a focused product range and a process and service completely dedicated to their needs.
“That undertaking, and our continued commitment to that client base and their advisers, means that 56% of our total business is now with portfolio landlords so we fully understand their needs and those of the intermediaries who work on their behalf.
“The PRA underwriting requirements will mean significant changes to many lenders’ systems and process, and an increase in complexity and workload for advisers. Our aim however is make sure the opposite is true when it comes to dealing with Fleet Mortgages – we have outlined our key commitments, which means no extra work required or extra information requested.
“Advisers who have conducted portfolio landlord business with us will see that our proposition is all about simplicity, flexibility, confidence and consistency. We have therefore worked on our processes to deliver on this and advisers should notice the difference between our requirements and those of our peer group.
“The next few months will be a very interesting and somewhat challenging period for advisers and their portfolio landlords, but we can reassure them there will be no such problems in using Fleet Mortgages.
“Moving forward we have a significant amount of money to lend, highly competitive products and criteria including an ICR of 125% at 5%, and we have the know-how and appetite to deal with advisers’ portfolio landlord clients. It truly is ‘business as usual’ but with an even greater focus on ensuring a smooth process for all concerned.”