Fleet Mortgages revamp HMO product range

By Bridging Loan Directory 23rd August 2024

Fleet Mortgages, the buy-to-let specialist lender, has today (23^rd August 2024) announced a revamp of its product range for those purchasing or remortgaging houses of multiple occupation (HMOs).

From today, Fleet is launching a new two-year, fixed-rate HMO mortgage for landlord borrowers, with a rate of 6.49%, available up to 75% LTV; the product also comes with a £1,999 fixed fee and has a maximum lending amount of £750k.

At the same time Fleet is reducing its five-year fixed-rate HMO mortgage by 35 basis points, cutting it from 5.89% to 5.54%; this product has a 3% fee, with a minimum of £750 and comes with a maximum lending amount of £1m.

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

“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.

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.

To that end, 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.

Having both a shorter- and longer-term option for landlord borrowers active in the HMO space is important as it offers them further choice and different rates/fees depending on what they would like to achieve.

We certainly believe the HMO market is going to grow in importance both in terms of what it can deliver to landlords and tenants, but also in terms of what it might offer to the UK private rental sector.

Fleet is a specialist in this market, and advisers looking for support should actively contact their regional sales team member to see how we might help them achieve the best mortgage product outcome for their landlord clients.”