Fleet Mortgages has announced a revamp of its product range for those purchasing or remortgaging houses of multiple occupation (HMOs).
The buy-to-let specialist 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.
Fleet is also 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.
Commenting on the product changes Fleet chief commercial officer Steve Cox 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.
“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.
He added: “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.”
