Mortgage deals change again as lenders seek landlord …
The fierce competition for landlord customers continues amongst lenders.
Fleet Mortgages has changed its product range for HMOs launching a new two-year, fixed-rate HMO mortgage at 6.49% available up to 75% loan-to-value. It comes with a fixed fee of £1,999 and a maximum lending amount of £750,000.
Fleet has also cut its five-year fixed-rate HMO mortgage by 35 basis points, from 5.89% to 5.54%:there’s a 3% fee of a minimum £750; there’s a £1m top limit to the borrowing.
Fleet’s chief commercial officer, Steve Cox, says: “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 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 private rental sector.”
Meanwhile CHL Mortgages has made changes to its limited edition BTL range in regard to small HMOs or multi-unit freehold blocks (MUFBs).
This includes two year fixed rates where investors can choose between 0% and 3.5% fees; likewise for five year fixed rates the fee options now include 0%, 3.5% and 7%; and for self-contained units with up to six bedrooms, a two-year fixed rate with a 0% fee or five-year fixed rates with 0% or 7% fee options are on offer.
CHL’s commercial director, Ross Turrell, comments: “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.”
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