Fleet Mortgages has cut rates by 0.15% on its 5-year house in multiple occupation (HMO) and multi-unit freehold block (MUFB) fixed-rate products and launched a £1,000 cashback offer.
The 5-year 75% loan-to-value (LTV) £3,999 fixed-fee product has dropped from 5.69% to 5.54%, and the zero fee option has dropped from 5.89% to 5.74%.
The 3% fee product for properties with an energy performance certificate (EPC) rating of A to C stays at 5.14%.
The lender is now offering £1,000 cashback on all completed 2-year and 5-year HMO/MUFB fixes at 75% LTV, to help landlords with upfront costs such as valuation fees, conveyancing and licensing.
Additionally, there is an extra £1,000 cashback available for landlords on 5-year fixed-rate products who improve their property’s EPC rating to a C or above during the fixed period.
Both cashback offers can be combined for a total of £2,000, unless the property already has an EPC rating of A to C at completion.
Steve Cox, chief commercial officer at Fleet Mortgages, said: “Following last week’s rate cuts we have now been able to drop pricing on these 75% LTV HMO/MUFB products, which come with both a fixed-fee or zero fee option.
“At the same time, we are adding a further cashback incentive.
“Upfront costs for landlord borrowers continue to rise, and it’s therefore important as a specialist buy-to-let lender that we look at options to help them in terms of helping covering these.”
Cox added: “The addition of £1,000 cashback to our two- and five-year HMO/MUFB fixes will certainly ease this financial burden, with landlord borrowers being able to put this money toward their valuation costs, for example, which tend to be higher for these types of properties.
“As specialists in this field, we’re acutely aware of the added complexity that can come with such properties, and we’re here to support advisers with our knowledge and experience, in order that they can present the right solutions and secure the right outcomes for these clients.
“If advisers are looking for support in this area, or in any other aspect of buy-to-let, then they should certainly contact their local external or internal Fleet BDM, to see how we can help them grow their advice propositions and service these clients.”
Fleet Mortgages said the new cashback aims to help cover higher upfront costs for HMO and MUFB properties.
The green cashback offer remains in place for landlords who improve EPC ratings during the fixed term.
