"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 to cover these"
- Steve Cox - Fleet Mortgages
Fleet Mortgages has reduced rates across its five-year fixed-rate HMO and multi-unit freehold block products and introduced a new cashback offer aimed at easing upfront costs for landlords.
The specialist buy-to-let lender has applied a 15bps cut to its five-year 75% loan-to-value range. The £3,999 fixed-fee product has been reduced from 5.69% to 5.54%, while the zero-fee product has dropped from 5.89% to 5.74%. Fleet continues to offer a 3% fee option for energy-efficient properties (EPC A–C), which maintains its 5.14% rate.
Fleet has also announced that it has added a £1,000 cashback to all completed cases on its two- and five-year HMO/MUFB fixes, regardless of the fee structure. The lender says the incentive is intended to offset higher upfront costs associated with this sector, including valuation fees, licensing, conveyancing, and more.
Fleet also continues to offer an additional £1,000 Green cashback for landlords who take out a five-year fixed-rate mortgage and upgrade the property's EPC rating to a C or above during the fixed period. Properties already rated A–C at completion are not eligible for the green incentive.
That means HMO/MUFB landlords improving their energy efficiency could receive up to £2,000 in cashback.
Fleet noted increased interest from both new and experienced landlords in the HMO and MUFB market, citing continued strong rental demand and the potential for higher yields.
“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," comments Fleet's chief commercial officer, Steve Cox.
“At the same time," he added, "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 to cover these,"
“The addition of £1,000 cashback to our two- and five-year HMO/MUFB fixes will certainly ease this financial burden, with landlord borrowers being able to put this money toward their valuation costs, for example, which tend to be higher for these types of properties.
Cox concluded, "As specialists in this field, we’re acutely aware of the added complexity that can come with such properties, and we’re here to support advisers with our knowledge and experience, in order that they can present the right solutions and secure the right outcomes for these clients.
“If advisers are looking for support in this area, or in any other aspect of buy-to-let, then they should certainly contact their local external or internal Fleet BDM, to see how we can help them grow their advice propositions and service these clients.”
