Fleet expands HMO range and MFS lowers BTL rates

Fleet Mortgages has announced a big expansion of its houses in multiple occupation (HMO) mortgage range.

MFS has also announced that it is lowering rates on all of its products.

The lender has introduced new zero and fixed-fee products while also reducing rates on existing HMO, standard and limited company mortgages.

Key highlights of the changes include three new HMO products:

• 65% LTV five-year fix with a zero fee at 6.04%
• 65% LTV five-year fix with a £3,999 fixed fee at 5.59%
• 75% LTV five-year fix with a £3,999 fixed fee at 5.69%.

There are also rate cuts on existing HMO products of between 10 and 40 basis points, and lower rates for selected standard and limited company mortgages.

Fleet is also increasing the maximum loan size on all fixed-fee products to £750,000.

‘Revamp of our HMO product range’

Chief commercial officer, Steve Cox, said: “At the end of August we were able to announce a revamp of our HMO product range and this month we can add new zero and fixed-fee options, plus we’re also able to make significant rate cuts.

“There has been a growth in demand for HMO mortgage finance as landlords seek to build a more diverse portfolio and secure the higher rental yields that often come with such properties.”

He adds: “We have been able to cut rates on our existing HMO, standard and limited company products which we believe will be welcome news to both advisers and their landlord clients.

“We’ve seen a more positive market in the last couple of months and anticipate this continuing throughout the rest of 2024.”

MFS cuts rates across product range

Market Financial Solutions (MFS) has announced rate reductions across its entire product range.

This includes its ‘Bridge Fusion’ product, a unique hybrid of a bridging loan and a longer-term buy to let (BTL) mortgage.

Key highlights of the rate cuts include:

• Reduced rates on the Bridge Fusion range, introduced in June 2024
• Lower rates on both bridging loans and residential BTL mortgages.

Starting rates of 0.39% +BBR for bridging loans and 5.04% for two-year fixed BTL mortgages.

‘The market is heating up’

Paresh Raja, the chief executive of MFS, said: “The market is heating up now that the Bank of England has started to bring down the base rate, so now is an opportune moment for us to help maintain the momentum that is building by reducing our rates.

“With significant price reductions across our higher loan tiers, the move will help brokers find the right product for their clients.

“As such, we are expecting to see a further surge in demand and look forward to supporting brokers through this period.”

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