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New mortgage products utilising 'advantages of a corporate structure'

Fleet Mortgages has launched three new limited company products for those borrowers using corporate structures to purchase or remortgage property.

The buy-to-let and specialist lender has made the new products obtainable with immediate effect and are available up to 65% loan-to-value.

The new products include a pay rate lifetime tracker at 4%, with rent calculated at 125% at 4%; a two-year fix at 3.40% - rent is calculated at 125% at 5%; and a five-year fix at 3.79% with rent again calculated at 125% at 5%.


With tougher underwriting criteria being introduced by the Prudential Regulation Authority at the start of next month which require lenders to conduct tougher ‘stress tests’ to ensure personal borrowers can repay their mortgages if interest rates rose to 5.5%, Fleet Mortgages is hoping to attract more buy-to-let landlords investing through limited companies.

In recent months, several lenders have increased stress tests for personal borrowers from 125% to 145%, whilst maintaining stress rates at 125% for those borrowing via a corporate vehicle.

Bob Young, chief executive officer of Fleet Mortgages, commented: “With just a few weeks left until we see some significant changes to the buy-to-let market for many lenders, it is vitally important that advisers look at all the available options for those clients who are going to be impacted by this.

“To that end, and given the increasing popularity of limited company buy-to-let, we have launched three new products in our range for borrowers utilising the advantages of a corporate structure.” 

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