HMO and MUFB products for first-time landlords

Earlier this year, we launched our first range of products aimed specifically at smaller landlords (those with three or fewer properties) and the reaction was very positive. Following this up, in June we introduced two new lower-priced 2 year and 5 year fixed rate products further demonstrating our commitment to these non-portfolio landlords.

We also decided to further help smaller landlords take advantage of a different limited company structure, allowing investors to retain property within a trading limited company that has been active for 2 years, rather than having to set up an SPV. At the same time, we introduced new trading limited company products.

Now we have turned our attention to first-time landlords (FTLs). Breaking new ground has become a feature of our proposition and FTLs have, up to now, had more hoops to jump through than their more seasoned counterparts up to now.

HMOs and MUFBs have been something of a closed shop for FTLs, as many lenders have felt that they needed to have built up experience first. However, we believe that this class of landlord are now more sophisticated than they have been given credit for in the past. They understand the responsibilities that come with managing an HMO or MUFB and, having done their homework, they know the yields are much higher than single flats or houses resulting in greater financial rewards.

To that end, we are backing that belief by supporting FTLs in this crucial niche and have developed two new products identically priced for both HMOs and MUFBs.

A two year fixed product at 3.49% and a five year fixed product at 3.79% with maximum LTVs of 70% and 1.5% fee.

New first time landlords are the future of the sector and we are proud to be able to give our introducers the tools to support them.

For more information or to discuss any of your BTL cases please get in touch using our BDM finder. Or check out our Guides to HMOs and MUFBs.