Fleet Mortgages has introduced one-year fixed-rate buy-to-let deals starting at 3.49%, with a 2.5% product fee. This move adds a short-term fixed product to the market, which has been dominated by longer-term fixes of three to five years. The rate applies across standard properties and houses in multiple occupation (HMOs), as well as limited company structures.
For landlords, this product could appeal in a rising interest rate environment where there is uncertainty about medium-term borrowing costs. Locking in a rate for just one year provides some cost certainty without the commitment of a longer fix. However, the 2.5% fee means the effective cost over a short term might be higher than headline rates suggest.
Our data shows that average buy-to-let mortgage rates have settled around 4% for two- to five-year fixes, so a 3.49% one-year fix is competitive on the surface. But investors will need to factor in fees and potential refinancing risk after 12 months. This product is likely best suited to landlords expecting to sell or refinance within a year, or those wanting to test the market before committing to a longer fix.
In addition, the inclusion of HMOs and limited company borrowers broadens the appeal. These segments often face higher rates or fewer product options. Fleet Mortgages’ move could signal a modest shift towards more flexible short-term products for buy-to-let landlords, reflecting ongoing market volatility and lender caution.
Source: Property118
