Landbay has launched two new buy-to-let products for first-time landlords who want to invest in houses in multiple occupation.
Lenders typically require HMO borrowers to have some experience as a landlord before lending on this type of property.
Landbay says it is responding to broker feedback and an increase in enquiries from first-time landlords who are looking for higher yield investments.
The products are available for HMOs with up to six bedrooms, including new-build properties.
It is offering a two-year fixed rate at 3.49% and a five-year fix at 3.79% up to 70% LTV with a 1.5% fee.
Landbay managing director for intermediaries Paul Brett says: “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.”
Original Article from Mortgage Strategy 12/07/21