Castle Trust Bank has added a medium HMO category to its TermTen buy-to-let range, introducing a five-year fixed rate of 5.99% at up to 75% LTV for properties with between seven and ten rooms.
The new tier sits between the existing small HMO category, which covers properties with up to six rooms, and the large HMO category for properties with 11 to 15 rooms. Loans are available from £200,000 to £5 million, with a 3% arrangement fee and a 1% exit fee. Loans above £5 million can also be considered, subject to bespoke pricing.
TermTen combines a ten-year term with a five-year fixed rate and interest-only payments. It is open to portfolio landlords, first-time landlords, limited companies and individuals, as well as expats, foreign nationals, and borrowers with complex ownership structures.
Beyond HMOs, the range covers standard residential properties, multi-unit freehold blocks and holiday lets. The bank applies aggregated values on blocks of flats with up to ten units and assesses holiday lets on holiday let income.
"An HMO with seven rooms can present a different lending requirement from one with 15 rooms," said Anna Lewis, commercial director at Castle Trust Bank (pictured).
"Our new medium HMO category recognises that difference, helping brokers match pricing more closely to the property their client is financing.
"Landlords need to consider both their monthly borrowing costs and their longer-term plans. TermTen gives them a way to manage both, while our broad lending criteria help brokers support clients with a wide range of properties and ownership structures."
