Fleet increases maximum borrower age to 85

Fleet has recognised that, following the pension freedoms, there will be a growing number of retirees who wish to use money from their pension pot to purchase a buy-to-let investment. The lender revealed that since its launch, nearly 50% of all applications have been from borrowers over 50.

Fleet has also announced a series of rate reductions across its product range for individual landlords, including:

- 4.09% for a five-year fixed rate at 75% LTV - a reduction of 10 basis points. 1% completion fee.
- 3.95% for a three-year tracker at 80% LTV (LIBOR plus 3.39%) - a reduction of 80bps. 2% completion fee.
- 3.99% for a two-year fixed rate at 80% LTV – a reduction of 80bps. 2% completion fee.

There has also been a 10bps rate cut on Fleet Mortgages’ limited company, two-year fixed rate offering, available up to 80% LTV. This brings the rate down to 4.79% and comes with a completion fee of 1.5%. All completion fees across the entire range can be added to the loan.

Bob Young, Chief Executive Officer of Fleet Mortgages, commented:

“We continually review our product range to make sure all products are as competitive as they can be and that they provide a range of options to both our intermediary partners and their clients. Our rate changes make these standard buy-to-let products for individual landlords even more attractive on price and we believe they will be welcomed by advisers. We would also urge all advisers to look at our products for both limited companies and HMOs as these are incredibly competitive in today’s market.

“Fleet Mortgages is also committed to evolving and enhancing our criteria in order to ensure it is fit for purpose in a changing marketplace – this why we have increased our maximum customer age, at the end of loan, up from 75 to 85 years old. We recognise, for instance, that people are living longer, that landlords want to hold their properties longer into retirement plus there is a growing appetite amongst people over 50 wanting to invest in property. Since launch, close to 50% of all our applications are from borrowers over 50.

“We suspect that with the newly-introduced pension freedoms there will be a small, but perhaps growing, number of retirees who wish to use money from their pension pot to purchase a buy-to-let investment. It’s therefore important that our criteria reflect these changes and uniformly unambiguous which will make life easier for all our stakeholders, particularly brokers and their clients.”