Fleet Mortgages has refreshed its product range for landlords purchasing or remortgaging HMOs.
The lender has launched a new two-year fixed-rate HMO mortgage, which offers loans up to £750,000 at maximum 75% LTV.
The option is priced at 6.49% and comes with a £1,999 fixed fee.
Fleet has also reduced its five-year fixed-rate HMO mortgage by 35 bps, which is now available at 5.54% — this product offers loans up to £1m and include a 3% fee (with a minimum of £750).
Steve Cox, chief commercial officer at Fleet Mortgages (pictured above), 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 PRS.”
