Fleet Mortgages cuts rates and launches HMO product

The HMO five-year fix is offered up to 75 per cent loan to value (LTV) at a rate of 3.59 per cent and comes with a rental calculation of 125 per cent at the initial rate, and a fee of 1.5 per cent. 

Fleet said the launch followed feedback from its intermediary partners and tied into the growing demand for higher-yielding HMO properties. 

The lender has also reduced rates across a number of its individual buy-to-let product range including: 

• Two five-year fixed, 75 per cent LTV, pay-rate products – pricing has been cut from 3.59 per cent to 3.45 per cent and from 3.74 per cent to 3.6 per cent. The 3.45 per cent product comes with a fee of two per cent and the 3.6 per cent product comes with a 1.25 per cent fee. 
• Two five-year fixed, 75 per cent LTV products – pricing has been cut on both of these from 3.34 per cent to 3.19 per cent with a rental calculation of 125 per cent at 5.5 per cent for each. The first of these products has a fee of 1.25 per cent, the second 1.5 per cent with a free valuation. 

The introduction of the new HMO product and the rate cuts follow the recent announcement by Fleet Mortgages of its new funding partnership with asset manager, One William Street (OWS) Capital Management, which has brought the amount of money the lender has to lend in the UK buy-to-let market up to £1.4bn. 

Steve Cox (pictured), distribution director of Fleet Mortgages, said: “Over the past year to 18 months, we’ve seen a considerable growth in interest in HMO properties. 

“As the latest UK Finance figures show, there has been a growing level of buy-to-let activity throughout 2019, particularly from professional landlords.” 

He added: “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.”