Saffron Building Society has launched a series of niche Buy-to-Let mortgages aimed at experienced landlords wanting to capitalise on renting Houses in Multiple Occupation (HMO).
Product key features:
Small HMO BTL:
3.37% fixed until 31.10.2021, 75% LTV (2 Year)
Large HMO BTL:
3.67% fixed until 31.10.2021, 65% LTV (2 Year)
Small HMO BTL Light Refurb:
3.64% (SVR-2.0%), 3 Year Discount, 75% LTV
Large HMO BTL Light Refurb:
3.94% (SVR-1.7%), 3 Year Discount, 65% LTV
The Small HMO products are designed for experienced Buy-to-Let investors looking to purchase their first HMO property (maximum tenants 4), add to their existing portfolio of HMO properties or re-mortgage an existing HMO mortgage. The Large HMO alternatives relate to properties designed to accommodate up to 6 tenants.
Wider options for landlords include HMO products where properties require a level of light refurbishment prior to renting the property. This may be cosmetic work, work to meet HMO regulation or light internal structural work to create additional bedrooms.
In addition to the new HMO mortgage options Saffron is introducing an improved 3.44% (SVR-2.2%) 3 Year Discount BTL Light Refurbishment product with an LTV of 75% giving even further choice to those wishing to secure an income from rental property.
These new mortgages are open to applications from private landlords or landlords operating as a limited company.
Anita Arch, Saffron Building Society’s Head of Mortgage Sales said: “The recent changes to Buy-to-Let regulation have resulted in landlords looking at how they can maximise rental yield – Houses in Multiple Occupation have become a key area of focus. The HMO products we’ve introduced are designed to not only increase landlord’s income, but in the most efficient way possible creating new opportunities for intermediaries and their customers.”