Fleet Mortgages has announced the reintroduction of two five-year fixed-rate options for House in Multiple Occupation (HMO) and Multi-Unit Freehold Block (MUFB) properties. This move is significant for landlords as it provides more flexible financing solutions in a challenging buy-to-let market.
What are the new buy-to-let mortgage options?
The newly reintroduced products are available up to a certain Loan-to-Value (LTV). The zero-fee option is set at a competitive rate, while the fixed-fee product offers a lower rate. Both options can be used for either purchasing or remortgaging HMO and MUFB properties. Additionally, each product includes a cashback upon completion, which can help offset transaction costs.
Who can benefit from these buy-to-let mortgages?
These products are particularly beneficial for landlords and investors interested in HMOs and MUFBs, which are increasingly seen as viable options for generating higher rental yields. The reintroduction of these fixed-rate options provides more choices tailored to different financial situations, especially for those who prefer to avoid upfront fees or those who seek to reduce their overall borrowing costs.
What changes have been made recently?
Fleet Mortgages has made several enhancements to its criteria in recent months. Notably, they have removed the minimum income requirement, reduced the trading history needed for self-employed applicants, and extended the maximum mortgage term. They have also increased the maximum LTV for new-build flats and eliminated height restrictions on blocks of flats. These changes aim to make it easier for a broader range of borrowers to secure financing.
What this means for landlords and investors
The reintroduction of these products comes at a time when many landlords are reassessing their portfolios to ensure they can maintain profitability despite rising costs associated with buy-to-let properties. The flexibility of having both zero-fee and fixed-fee options allows landlords to choose a structure that best fits their financial strategy. The cashback incentive can also alleviate some of the financial burdens associated with property transactions, making it an appealing choice for new and existing landlords alike.
Frequently asked questions
What is the maximum loan amount available with these products?
The maximum loan amount available with the new HMO and MUFB products is not specified.
Are these products available for remortgaging?
Yes, both the zero-fee and fixed-fee options can be used for purchasing or remortgaging HMO and MUFB properties.