Fleet Mortgages adds new products to HMO range

By Bridging Loan Directory 6th September 2024

Fleet Mortgages, the buy-to-let specialist lender, has today (6^th September 2024) announced a number of new zero and fixed-fee products in its houses of multiple occupation (HMOs) range, while also cutting rates on a number of existing HMO, standard, and limited company mortgages.

The lender is launching three new HMO products today:

65% LTV five-year fix zero fee product, offered at 6.04%.
65% LTV five-year fix, with a £3,999 fixed fee, offered at 5.59%.
75% LTV five-year fix, with a £3,999 fixed fee, offered at 5.69%.

Price cuts of between 10 and 40 basis points (bps) have also been made to a number of HMO products including:

75% LTV two-year fix, with a 3% fee, now offered at 5.09% down from 5.49%; the £1,999 fixed-fee alternative product now has a rate of 6.29% down from 6.49%.
75% LTV five-year fix, with a 3% fee, now offered at 5.39% down from 5.54%; the zero fee alternative product now has a rate of 6.14% down from 6.49%.

Fleet has also cut rates to selected standard and limited company products:

The 65% five-year fix, 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 £750k.

Steve Cox, Chief Commercial Officer at Fleet Mortgages, commented:

“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 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.

At the same time 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.

As usual the Fleet team is here to help advisers with their buy-to-let client needs and we would urge them to get in touch with their sales contacts to discuss the options available to them.”