Fleet Mortgages launches a new five-year HMO pay-rate deal and also cuts rates on a number of its individual landlord products.
The new HMO five-year fix is offered up to 75% LTV at a rate of 3.59% and it comes with a rental calculation of 125% at the initial rate, with a fee of 1.5%.
The lender said that the introduction of the product comes after its intermediary partners and ties into the growing demand for higher-yielding HMO properties.
They have also reduced rates across a number of their individual buy-to-let product range including:
- Two five-year fix, 75% LTV, pay-rate products – pricing has been cut from 3.59% to 3.45% and from 3.74% to 3.6%. The 3.45% product comes with a fee of 2% and the 3.6% product comes with a 1.25% fee.
- Two five-year fix, 75% LTV products – pricing has been cut on both of these from 3.34% to 3.19% with a rental calculation of 125% at 5.5% for each. The first of these products has a fee of 1.25%, the second 1.5% with a free valuation.
The introduction of the new HMO product and the rate cuts come after the Fleet Mortgages announced of its new financial partnership with the asset manager, One William Street (OWS) Capital Management, which brings the amount of money the lender has to lend in the UK buy-to-let market up to £1.4 billion.
Distribution director of Fleet Mortgages, Steve Cox, said: “Over the past year to 18 months, we’ve seen considerable growth in interest in HMO properties as landlords look to maximise their rental yield in light of the taxation changes which impact on their ability to claim mortgage interest tax relief. HMO products and lending have always been one of our three core areas and we’re very pleased to be launching this new five-year pay-rate product which will be of interest to those landlords seeking to ensure they can secure the loan amount they need at a highly competitive rate.
“We’ve also been able to cut rates across a number of our individual five-year fix products, offering a series of incentives including pay-rate rental calculations and products with a free valuation. As the latest UK Finance figures show, there has been a growing level of buy-to-let activity throughout 2019, particularly from professional landlords, and as specialists in this market, we believe we can offer advisers and their clients everything they need to take full advantage of market conditions, and ensure they have the funding they need to bolster their portfolios.”