Fleet Mortgages has reintroduced two five-year fixed-rate products aimed at landlords. These products are for those purchasing or refinancing Houses in Multiple Occupation (HMOs) and Multi-Unit Freehold Blocks (MUFBs).
The buy-to-let lender has launched a zero-fee option at 6.09% and a 5.99% product that carries a £1,499 fee. Both are available up to 75% loan-to-value, and both options provide £1,000 cashback upon completion. The fixed-fee product has a maximum loan size of £750,000.
Fleet Mortgages stated that these products are being reintroduced as landlords increasingly consider HMOs and MUFBs due to the higher rental yields they can often provide. Steve Cox, chief commercial officer at Fleet Mortgages, noted that landlords are looking to secure stronger rental yields given the higher costs associated with owning and financing buy-to-let property.
This reintroduction follows other changes by the lender this year, including removing its minimum income requirement and extending its maximum mortgage term to 35 years. Fleet has also increased the maximum loan-to-value on new-build flats to 75% and removed height restrictions on blocks of flats.