Multi-unit freehold block mortgages
From a first-time landlord’s first block to an experienced investor’s largest, we look at every multi-unit case on its merits.
Up to 12
Units per block
Up to 75%
Maximum LTV
Up to £3m
Loan size
First-time
Landlords welcome
Lending on blocks of every size
- Lending on blocks of every size
From small blocks of up to 6 units to larger freeholds of up to 12, we lend across the range.
- First-time landlords welcome
A dedicated range for landlords taking their first step into multi-unit blocks.
- Direct access to underwriters
Once the case is submitted, you’ll deal directly with your dedicated underwriter, for decisions you can count on.
Frequently asked questions
- What counts as a multi-unit freehold block?
Multiple flats on a single freehold title. Each unit needs to be fully self-contained, and we can consider units under 25 sq m. Utilities don’t need to be split between units.
- How many units can the block have?
Up to 12. We treat blocks of up to 6 units as small and blocks of 7 to 12 units as large.
- What’s the maximum LTV and loan size?
Up to 75% LTV, and loans up to £3m. The maximum LTV depends on the loan size, the size of the block and the product, so check our live MUFB products for current limits.
- Can first-time landlords apply?
Yes. We have a dedicated range for first-time landlords buying a small block of up to 6 units.
- What landlord experience do you need?
For larger blocks, we look for at least a year’s experience as a landlord. First-time landlords can use our dedicated range for small blocks of up to 6 units.
- Do you lend on holiday let multi-unit blocks?
Yes. We have a dedicated holiday let range for small multi-unit blocks of up to 6 units in England and Wales. At least one applicant needs previous landlord experience. Check our live holiday let products for current rates and loan sizes.
- Can limited companies apply?
Yes. We lend to SPV limited companies on multi-unit freehold blocks, as well as to individuals.
- What’s the minimum property value?
£120,000, with no minimum value per unit.
- How do you value a multi-unit block?
All our valuations are carried out by RICS registered valuers to Red Book standards. We value a multi-unit freehold block as a whole, rather than on the aggregate value of the individual units. If the flats have individual leases in place, we value each one in its own right as a standard leasehold property.
- How do you assess affordability?
ICR and pay rate rules
- 125% ICR for basic rate taxpayers and limited companies
- 140% ICR for higher rate taxpayers
- 2-year fixed and tracker products are stressed at pay rate plus 2%, with a minimum of 5.50%.
- 5-year fixed products are stressed at pay rate.A
- All product-specific pay rates can be found here.
- Can I remortgage a multi-unit block?
Yes. Existing blocks can be remortgaged using our Specialist range of standard MUFB products, and existing borrowers can switch with a product transfer. Both allow capital raising, subject to LTV and valuation.
- Do you need planning evidence?
Yes. Where a property has been converted or altered, we need evidence of planning permission for its current layout and use.
- Do you lend on multi-unit blocks in Scotland?
We lend on multi-unit freehold blocks in England and Wales. In Scotland we lend on small HMOs of up to 6 bedrooms.