It also cuts rates across selected deals
Specialist buy-to-let lender Fleet Mortgages has announced new zero and fixed fee products for houses in multiple occupation (HMOs), alongside rate reductions across several existing HMO, standard, and limited company mortgages.
The lender introduced three new five-year fixed rate HMO products, including a 65% loan-to-value (LTV) zero-fee option at 6.04%, a 65% LTV product with a £3,999 fixed fee at 5.59%, and a 75% LTV product with the same fixed fee at 5.69%.
In addition to the new products, Fleet has slashed rates on existing HMO products by 10 to 40 basis points (bps). Repriced products include the 75% LTV two-year fix with a 3% fee, now offered at 5.09%, down from 5.49%. Its alternative fixed-fee option, with a £1,999 fee, now carries a rate of 6.29%, down from 6.49%. Meanwhile, the 75% LTV five-year fix with a 3% fee is now 5.39%, reduced from 5.54%, while the zero-fee alternative is now priced at 6.14%, down from 6.49%.
Fleet also lowered rates on selected standard and limited company products. The 65% LTV five-year fix with a £1,999 fee now has a rate of 5.19%, down from 5.44%, and the 75% LTV five-year fix with a £3,999 fee has dropped to 5.29%, down from 5.39%.
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In addition, the buy-to-let lender has increased the maximum loan size on all fixed-fee products to £750,000.
“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,” said Steve Cox (pictured), chief commercial officer at Fleet Mortgages.
“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’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.”
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