Landbay adds HMO range for first-time landlords
Landbay has launched two buy-to-let (BTL) mortgage products for first-time landlords who want to invest in houses in multiple occupation (HMO).
Most lenders require HMO borrowers to have some experience as a landlord before lending on this type of property, but Landbay said that broker feedback has revealed more enquiries are coming from well informed first-time landlords.
The products are available for HMOs with up to six bedrooms, including new-build properties.
The 2-year fixed rate is set at 3.49% and the 5-year fix is 3.79%, with both products available up to 70% loan-to-value (LTV) and a 1.5% fee.
Paul Brett, managing director at Landbay, said: “Landlords are becoming more sophisticated and they understand the responsibilities of managing an HMO.
“They have done their homework and know the yields on HMOs are much higher than single flats or houses resulting in greater financial rewards.”
“There is also more demand for living in HMOs, particularly from young professionals who want or need to share a house.
“Some simply can’t afford to rent their own place but many actually like communal living.
“Much of the HMO accommodation is far better quality than it used to be and can demand a higher rent.”