Fleet Mortgages has reintroduced two five-year fixed-rate products for landlords 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 carrying a £1,499 fee, with both available up to 75% loan-to-value.
The fixed-fee product has a maximum loan size of £750,000, while both options provide £1,000 cashback on completion.
Fleet said the products were being reintroduced as landlords increasingly consider HMOs and MUFBs for the higher rental yields they can often provide.
Steve Cox, chief commercial officer at Fleet Mortgages, said: “We continue to see landlords looking closely at how they can secure stronger rental yields, particularly given the higher costs that now come with owning and financing buy-to-let property, and HMOs and MUFBs can clearly play an important role here.
“These are property types that can offer landlords greater income potential and provide further diversification within portfolios, so it’s important advisers have access to a broad range of finance options for clients who are either purchasing or refinancing in these areas.”
The launch follows a series of criteria changes by the lender this year, including considering joint applications involving foreign nationals and accepting company group structures registered anywhere in the UK.
Other changes have included removing its minimum income requirement, reducing the trading history required for self-employed applicants and contractors from two years to one full tax year, and extending its maximum mortgage term from 30 to 35 years.
Fleet has also increased the maximum LTV on new-build flats to 75% and removed height restrictions on blocks of flats.
