Fleet Mortgages has announced fresh rate reductions across its five-year fixed-rate HMO and multi-unit block (MUFB) mortgage range, alongside the launch of a new £1,000 cashback incentive aimed at easing upfront costs for landlord borrowers.
The specialist buy-to-let lender confirmed that rates on its five-year fixed products at 75% loan-to-value have been cut by 15 basis points. Its fixed-fee product at £3,999 now stands at 5.54%, down from 5.69%, while the zero-fee equivalent has been reduced from 5.89% to 5.74%. The lender’s 3% fee product for properties with an EPC rating of A to C remains unchanged at 5.14%.
CASHBACK DETAILS
In a move designed to assist landlords managing higher costs associated with HMOs and MUFBs, Fleet has also introduced a £1,000 cashback on completion for both two-year and five-year fixed-rate products across the range. The lender said the payment could help offset valuation fees — which are typically higher for these property types — as well as other expenses such as conveyancing and licensing.
In addition to the new offering, Fleet continues to provide its Green cashback feature. This gives landlords an extra £1,000 if they improve a property’s EPC rating to a C or above during the five-year fixed-rate term. Where a property does not already meet the A to C threshold at the point of completion, borrowers could therefore potentially receive up to £2,000 in total cashback incentives.
Steve Cox, chief commercial officer at Fleet Mortgages, said: “Following last week’s rate cuts we have now been able to drop pricing on these 75% LTV HMO/MUFB products, which come with both a fixed-fee or zero fee option. At the same time, we are adding a further cashback incentive. Upfront costs for landlord borrowers continue to rise, and it’s therefore important as a specialist buy-to-let lender that we look at options to help them in terms of helping covering these.”
He added that the cashback would help ease the financial burden of higher valuation costs and noted the company’s continued commitment to supporting brokers working with more complex HMO and MUFB cases.
Landlord interest in both HMOs and MUFBs has been on the rise, Fleet said, with investors keen to maximise yields and cater to increasing demand for shared accommodation. To support advisers, the lender recently released a dedicated guide, ‘A Guide to HMOs: Licensing, Planning & Article 4’, which is available to download from its website.
