"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"
Landbay’s product changes will mean small HMOs of 6 bedrooms or less will be treated as standard properties, while the minimum property value will also be reduced to £120,000.
Two-year fixed rates are available from 3.09% up to 75% LTV and five-year fixed rates start from 3.59% at 65% LTV.
Two-year fixed rates for large HMOs start from 3.59%, and tracker rates are also available from 3.10% with no ERCs.
Paul Brett – managing director of intermediaries at Landbay, commented:
“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.”
