{"id":5023690,"date":"2019-06-04T08:03:22","date_gmt":"2019-06-04T07:03:22","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=5023690"},"modified":"2023-10-10T15:28:35","modified_gmt":"2023-10-10T14:28:35","slug":"new-mortgages-launched-for-landlords-attracted-to-higher-yield-hmos","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/news\/new-mortgages-launched-for-landlords-attracted-to-higher-yield-hmos\/","title":{"rendered":"New mortgages launched for landlords attracted to higher yield HMOs\u00a0\u00a0"},"content":{"rendered":"

The HMO mortgage sector\u00a0<\/span><\/b>is steadily growing\u00a0<\/span><\/b>as lenders launch new products in response to the increasing number of landlords turning to this specialist area.\u00a0<\/span><\/b>\u00a0<\/span><\/h3>\n

Data from Leeds Building Society reveals that houses in multiple occupation (HMOs) offer the highest yields of all types of rental properties. Average returns are 6.9<\/span>%, as opposed to 5.8% for other property rental types.<\/span>\u00a0<\/span><\/p>\n

Leeds launched a range of mortgages tailored to small and large HMOs earlier this year<\/span>,<\/span>\u00a0in response to landlords increasingly moving into this rental sector as they diversify their portfolios and look for alternatives to the traditional buy-to-let business model.\u00a0<\/span>\u00a0<\/span><\/p>\n

Saffron launch\u00a0<\/span><\/b>four new mortgages<\/span><\/b>\u00a0<\/span><\/h3>\n

Saffron Building Society ha<\/span>s<\/span>\u00a0added four new\u00a0<\/span>products<\/span>\u00a0to their specialist mortgage range specifically targeting HMO landlords.\u00a0<\/span>\u00a0<\/span><\/p>\n

The societies small HMO\u00a0<\/span>buy-to-let\u00a0<\/span>products (<\/span>3.37% fixed until 31.10.2021, 75% LTV (two-year)<\/span>\u00a0and\u00a0<\/span>Light Refurb: 3.64% (SVR<\/span>\u00a0<\/span>2.0%), three-year discount, 75% LTV<\/span>) are aimed at experienced buy-to-let investors purchasing their first HMO with up to four tenants, adding to an existing portfolio or remortgaging an existing HMO.\u00a0<\/span>\u00a0<\/span><\/p>\n

They have also launch<\/span>ed<\/span>\u00a0two \u2018large HMO\u2019 products\u00a0<\/span>3.67% fixed until 31.10.2021, 65% LTV (two-year)<\/span>\u00a0and\u00a0<\/span>Light Refurb: 3.94% (SVR<\/span>\u00a0<\/span>1.7%), three-year discount, 65% LTV<\/span>\u00a0for HMOs with up to six tenants.\u00a0<\/span><\/p>\n

Fleet\u00a0<\/span><\/b>M<\/span><\/b>ortgages\u00a0<\/span><\/b>add two and five-year fixed mortgages to range<\/span><\/b>\u00a0<\/span><\/b>\u00a0<\/span><\/h3>\n

A<\/span>\u00a0<\/span>two-year fix<\/span>\u00a0at 4.39% and a\u00a0<\/span>five-year fixed rate offer at 4.49<\/span>% both with\u00a0<\/span>80% LTV<\/span>,<\/span>\u00a0<\/span>have been added to\u00a0<\/span>Fleet Mortgages<\/span>\u00a0HMO range.\u00a0 Steve Cox, Distribution Director<\/span>,<\/span>\u00a0said:<\/span>\u00a0<\/span><\/p>\n

\u201cProfessional and portfolio landlords are increasingly looking to add to portfolios via limited companies and are seeking to purchase both HMOs and MUBs in order to access greater levels of rental yield<\/span>\u00a0<\/span>Fleet<\/span>.<\/span>\u00a0However,\u00a0<\/span>\u2026<\/span>\u00a0many borrowers\u2019 own properties in their individual names and will continue to s<\/span>o\u2026<\/span>, which is why we were keen to ensure these 80 per cent LTV products were available<\/span>..<\/span>.\u201d<\/span>\u00a0<\/span><\/p>\n

Keystone cuts rates\u00a0<\/span><\/b>by 0.21%<\/span><\/b>\u00a0<\/span><\/h3>\n

Keystone has cut its rates on their specialist range. Their five-year fixed\u00a0<\/span>75% LTV<\/span>\u00a0has dropped from, 3.95% to 3.74<\/span>\u00a0%<\/span>, with a maximum loan value of \u00a31m. Available to landlords of HMOs and multi-unit properties individually or as a limited company.\u00a0<\/span>\u00a0<\/span><\/p>\n

Helping landlords maximise their rental yield with a range of new and improved HMO mortgage products is a strategic move by lenders competing in a tougher marketplace as landlords begin to feel the sting of regulation changes.\u00a0<\/span>However, HMOs may not be the only new focus for landlords; the Leeds study also found that\u00a0<\/span>multi-unit blocks\u00a0<\/span>(MUBs)\u00a0<\/span>of flats<\/span>\u00a0are offering an average yield of 6.3%.<\/span><\/p>\n

\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The HMO mortgage sector\u00a0is steadily growing\u00a0as lenders launch new products in response to the increasing number of landlords turning to this specialist area.\u00a0\u00a0 Data from Leeds Building Society reveals that houses in multiple occupation (HMOs) offer the highest yields of all types of rental properties. Average returns are 6.9%, as opposed to 5.8% for other… Read more »<\/a><\/p>\n","protected":false},"author":3380,"featured_media":4321,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4,26,6],"tags":[143],"class_list":["post-5023690","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment","category-tax-mortgages-money","category-uk-housing-market","tag-hmo"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/5023690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/3380"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=5023690"}],"version-history":[{"count":1,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/5023690\/revisions"}],"predecessor-version":[{"id":6097641,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/5023690\/revisions\/6097641"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/4321"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=5023690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=5023690"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=5023690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}