What are the new available rates?
Fleet Mortgages, a specialist in buy-to-let lending, has announced a significant update to its range of mortgages for houses of multiple occupation (HMOs). The changes, effective from August 23, 2024, aim to enhance the options available to landlord borrowers purchasing or remortgaging HMOs.
The lender is introducing a new two-year, fixed-rate HMO mortgage with a rate of 6.49%. This product is available up to 75% loan-to-value (LTV) and includes a fixed fee of £1,999. The maximum lending amount for this product is £750,000.
In addition, Fleet Mortgages is reducing the rate on its existing five-year fixed-rate HMO mortgage by 35 basis points, bringing it down from 5.89% to 5.54%. This product comes with a fee of 3%, with a minimum charge of £750, and offers a maximum lending amount of £1 million.
Steve Cox (pictured), chief commercial officer at Fleet Mortgages, highlighted the strategic nature of these updates. “As we know, in the quest for greater rental yield, many landlords have been looking at their existing portfolios and seeking to add properties which can fulfil this need,” he said. “HMOs are clearly one property type which can generate greater levels of rental income, and it’s certainly the case that more landlord borrowers are either eyeing up these properties to purchase or are looking to change existing homes into HMOs.”
Cox emphasised the importance of offering both shorter- and longer-term mortgage options to cater to varying landlord needs. “We wanted to both broaden our HMO offering, which we’ve done with the addition of this new two-year fixed-rate, plus we have also been able to cut our existing five-year fixed-rate by a substantial 35 basis points,” he added.
The updated product range aims to provide landlords with more flexibility and competitive choices as the HMO market continues to grow. Fleet Mortgages anticipates that the HMO sector will play an increasingly significant role in the UK private rental market, benefiting both landlords and tenants.
Advisers seeking further details can access Fleet Mortgages’ product guide and full lending criteria on the company’s website.
Fleet Mortgages, established in 2014 and based in Fleet, Hampshire, was acquired by Starling Bank in 2021 in a £50 million cash and share transaction. The lender specialises in buy-to-let and niche mortgage products.
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