Metro Bank has launched a specialist lending product designed for HMOs and MUFBs.
Available to both individual and limited company landlords, the new mortgage has a maximum LTV of 75% but this reduces to 70% for loans over £1m.
Rates start from 3.69% and 4.79% for two-year and five-year fixed-rate mortgages, respectively.
Metro Bank will make this available with HMOs with up to six tenants, or MUFBs with up to six units — in the case of the latter, each unit must be on a single AST.
Student lets and tenants on benefits will be considered, as will “less than perfect” credit profiles.
“HMO properties have become essential within the property ecosystem for renters and landlords alike,” said Charles Morley, head of mortgage distribution at Metro Bank.
“We know that these types of properties are great for landlords looking to expand their property portfolio, due to their higher income potential.”
