Fleet Mortgages has unveiled some new zero- and fixed-rate products in its house of multiple occupation (HMO) range, and is also cutting rates.
The specialist buy-to-let (BTL) lender is making the reductions on a number of existing HMO, standard and limited company mortgages.
It believes the changes will be welcomed in a changing market amid a growth in demand for HMO mortgage finance as landlords seek to build more diverse portfolios and secure the higher rental yields that often come with such properties.
New HMO products
It is launching three new HMO products today, which include a 65% LTV five-year zero-fee product with a rate of 6.04%.
There is also a 65% LTV five-year fix, with a £3,999 fixed fee and a rate of 5.59%.
Finally, there is a 75% LTV five-year fix with a £3,999 fixed fee and a rate of 5.69%.
Rate reductions
The reductions of 10-40 basis points on a number of HMO deals include a 75% two-year fix with a 3% fee and a rate of 5.09, which is down from 5.49%.
The £1,999 fixed-fee option on that deal now has a rate of 6.29%, down from 6.49%.
A 75% LTV five-year fix with a 3% fee is now available at 5.39%, down from 5.54%, while the no-fee option is available at 6.14%, down from 6.49%.
Demand for HMO finance
Steve Cox, chief commercial officer at Fleet Mortgages, said: “At the end of August, we were able to announce a revamp of our HMO product range, and this month we can add new zero- and fixed-fee options, plus we’re also able to make significant rate cuts.
“There has been a growth in demand for HMO mortgage finance as landlords seek to build a more diverse portfolio and secure the higher rental yields that often come with such properties.
“We therefore want to ensure we are offering the HMO landlord borrower[s] a greater array of options, in terms of LTV, but also fee structure, allowing them to meet affordability in different ways and to cut their cloth accordingly.”
Limited company products
Fleet Mortgages has also cut rates to selected standard and limited company products, including a 65% five-year fix, and its standard/limited company product with a £1,999 fixed fee now has a rate of 5.19%, down from 5.44%.
The 75% five-year fix, standard/limited company product with a £3,999 fixed fee now has a rate of 5.29%, down from 5.39%.
The maximum loan size on all fixed-fee products has increased to £750,000.
Cox added: “We have been able to cut rates on our existing HMO, standard and limited company products, which we believe will be welcome news to both advisers and their landlord clients.
“We’ve seen a more positive market in the last couple of months and anticipate this continuing throughout the rest of 2024, particularly given the level of mortgages coming up for maturity, coupled with landlords now more willing and able to add to portfolios with new purchases.”
