Good news, landlords! It seems the property market is heating up again, with big changes in the world of HMO and BTL mortgages. Let’s break it down:

Fleet Mortgages is revamping their whole HMO mortgage range:

• Brand new zero and fixed-fee products: This means you can choose a mortgage with no upfront fees or a fixed fee, giving you more control over your costs.
• Lower rates across the board: Rates have dropped on existing HMO products by 10 to 40 basis points.
• Bigger loans: You can now borrow up to £750,000 on fixed-fee products, giving you more power to buy bigger properties.

Here are a few of the new HMO options:

• 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%

Fleet’s Chief Commercial Officer, Steve Cox, says they’ve seen a big increase in demand for HMO mortgages. They think this is because landlords are looking to build a more diverse portfolio and get those higher rental yields.

MFS: BTL Rates Plummet

Market Financial Solutions (MFS) is also getting in on the action with slashed rates across the entire product range. This includes their “Bridge Fusion” product, a handy hybrid that combines a bridging loan and a longer-term BTL mortgage.

Here’s what you need to know:

• Rates on their Bridge Fusion product have dropped. Remember, this is a new product they launched in June 2024, and it’s already proving popular.
• Bridging loans and residential BTL mortgages have also seen rate reductions. You can now snag a bridging loan starting at 0.39% + BBR, and a two-year fixed BTL mortgage from 5.04%.

MFS CEO, Paresh Raja, says they’ve reduced rates to keep up with the market’s momentum. He believes that demand will soar as the Bank of England keeps bringing down the base rate.