Landbay has refreshed its product range with a focus on attracting landlords looking to mortgage a HMO.
Landbay will now treat small HMOs (with fewer than six bedrooms) like standard properties, meaning applicants can take out a 2-year fix at 3.09% to 75% loan-to-value.
For those with bigger HMOs 2-year fixes start at 3.59%.
Paul Brett (pictured), managing director of intermediaries at Landbay, said: “HMOs can offer extremely attractive rental yields, but letting out one property to multiple tenants does come with its complexities. That doesn’t however mean the lending criteria always needs to be, especially when managed by a specialist lender.
“Landlords have had a job on their hands coming to terms with recent tax and regulatory reform, and many experienced investors have been reviewing their portfolios, increasingly looking to HMOs to boost rental income and protect profits. I hope these changes will be well received by any broker with a HMO case to place.”
Other highlights of the product range include 5-year fixes from 3.59% to 65% LTV.