"We 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 private rental sector."
- Steve Cox, Chief Commercial Officer at Fleet Mortgages
Fleet Mortgages has today launched a new two-year fixed rate house of multiple occupation (HMO) mortgage for landlord borrowers, with a rate of 6.49% up to 75% loan-to-values. This 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 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.
“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,” explained Steve Cox, Chief Commercial Officer at Fleet Mortgages.
He said: “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,” Steve concluded.
