Saffron launches four HMO products

Michael Lloyd

May 30, 2019

Saffron Building Society has launched four houses in multiple occupation (HMO) buy-to-let mortgages.

There’s a small HMO buy-to-let 2-year fixed 3.37% product at 75% loan-to-value and a large HMO buy-to-let 2-year fix 3.67% mortgage at 65% LTV. There are also two 3-year discount light refurb products, a small HMO buy-to-let 3.64% at 75% LTV and a large HMO buy-to-let 3.94% at 65% LTV.

Anita Arch (pictured), Saffron Building Society’s head of mortgage sales, said: “The recent changes to buy-to-let regulation have resulted in landlords looking at how they can maximise rental yield – houses in multiple occupation have become a key area of focus.

“The HMO products we’ve introduced are designed to not only increase landlord’s income, but in the most efficient way possible creating new opportunities for intermediaries and their customers.”

The small HMO products are designed for experienced buy-to-let investors looking to purchase their first HMO property with four maximum tenants, add to their existing portfolio of HMO properties or re-mortgage an existing HMO mortgage.

The large HMO alternatives relate to properties designed to accommodate up to six tenants.

Wider options for landlords include HMO products where properties require a level of light refurbishment prior to renting the property. This may be cosmetic work, work to meet HMO regulation or light internal structural work to create additional bedrooms.

In addition to the new HMO mortgage options Saffron has introduced a 3.44% 3-year discount buy-to-let light refurbishment product with an LTV of 75%. These new mortgages are open to applications from private landlords or landlords operating as a limited company.


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