Fleet Mortgages has launched a new five-year HMO fixed rate deal that it hopes will prove popular with buy-to-let landlords.
The new HMO five-year fix is offered up to 75% loan-to-value (LTV) at a borrowing rate of 3.59%, subject to a rental calculation of 125% at the initial rate, with a fee of 1.5%.
Steve Cox, distribution director of Fleet Mortgages, commented: “Over the past year to 18 months, we’ve seen a 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.”
The buy-to-let specialist lender has also reduced rates across a number of its individual landlord products, including two five-year fixed rate deals at 75% LTV.
The pay-rate products have been reduced from 3.59% to 3.45%, subject a 2% arrangement fee, and from 3.74% to 3.6%, with this product carrying a 1.25% arrangement fee.
There are also two 75% LTV five-year fixed rate products available at 3.34%, down from 3.19% with a rental calculation of 125% at 5.5% for each. Thee is also product fees of 1.25% 1.5% respectively.
Cox added: “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.”