Landbay has launched two new buy-to-let 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 is responding to broker feedback which has revealed more enquiries are coming from well informed first-time landlords who are attracted by the higher yields HMOs can bring.
Landbay’s new products are available for HMOs with up to six bedrooms and includes new build property.
The two-year fixed rate is set at 3.49% and the five-year fix is 3.79% with both products up to 70% LTV and a 1.5% fee.
Paul Brett, Landbay’s Managing Director, Intermediaries, commented: “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.”
Established in 2014, Landbay is a multi-award-winning lending platform for prime residential buy-to-let mortgages, with funds originating from institutional investors.
Landbay was recently announced at number 6 in Deloitte’s Fast50 of the fastest growing technology companies in the UK and number 11 in the FT1000 – the Financial Times’ annual list of the fastest growing European companies. Landbay won a further eight awards in 2019 in recognition of growth and excellence within the industry.
Landbay is an FCA regulated company, a member of UK Finance and is based in London (UK).