LANDBAY has broadened its product proposition into lending for landlords managing houses in multiple occupation (HMO.)
The peer-to-peer buy-to-let lender will now offer products focusing on landlords with HMOs, a specialist area that banks often avoid.
The lender will offer different rates for small HMOs – classed as six bedrooms or less – and large HMOs – those with seven bedrooms or more.
Fixed rates start at 3.09 per cent at 75 per cent loan-to-value for a two-year deal on small HMOs, or 3.59 per cent for large ones.
There is also a tracker option at 3.10 per cent above LIBOR, giving a current rate of 3.62 per cent.
The minimum property value for HMO loans will be £120,000.
“HMOs can offer extremely attractive rental yields, but letting out one property to multiple tenants does come with its complexities,” Paul Brett, managing director of intermediaries at Landbay, said.
“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 an HMO case to place.”