Fleet and CHL enhance buy to let products

Fleet Mortgages has announced significant changes to its product range for houses of multiple occupation (HMOs).

Meanwhile, CHL Mortgages has refreshed its limited edition buy to let range, introducing new fee options.

Fixed-rate HMO mortgage

Fleet is launching a new two-year, fixed-rate HMO mortgage for landlord borrowers.

The mortgage offers a competitive rate of 6.49% and is available up to 75% loan-to-value (LTV).

It comes with a fixed fee of £1,999 and a maximum lending amount of £750,000.

Fleet is also reducing its five-year fixed-rate HMO mortgage by 35 basis points, bringing it down from 5.89% to 5.54%.

This product carries a 3% fee (minimum £750) and allows a maximum lending amount of £1 million.

‘Broaden our HMO offering’

The chief commercial officer at Fleet, Steve Cox, said: “We wanted to both broaden our HMO offering, which we’ve done with the addition of this new two-year fixed-rate, plus we have also been able to cut our existing five-year fixed-rate by a substantial 35 basis points.

“Having both a shorter- and longer-term option for landlord borrowers active in the HMO space is important as it offers them further choice and different rates/fees depending on what they would like to achieve.”

He added: “We certainly believe the HMO market is going to grow in importance both in terms of what it can deliver to landlords and tenants, but also in terms of what it might offer to the UK private rental sector.”

CHL Mortgages: Expanding fee options for landlords

Specialist lender CHL Mortgages has made enhancements to its limited edition buy to let range.

Landlords now have a wider selection of fee options when financing small HMOs or multi-unit freehold blocks (MUFBs), including:

• 2-year fixed rates: Investors can choose between 0% and 3.5% fee options
• 5-year fixed rates: Fee options now include 0%, 3.5% and 7%
• Self-contained units: For units with up to six bedrooms, a 2-year fixed rate with a 0% fee option or 5-year fixed rates with 0% and 7% fee options are available.

Quest for greater rental yield

CHL’s commercial director, Ross Turrell, said: “As we know, in the quest for greater rental yield, many landlords have been looking at their existing portfolios and seeking to add properties which can fulfil this need.

“HMOs are clearly one property type which can generate greater levels of rental income, and it’s certainly the case that more landlord borrowers are either eyeing up these properties to purchase or are looking to change existing homes into HMOs.”

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