A report in The Guardian1 in April revealed that there has been an increase in the number of people living alone. The number of those living on their own increased by 16% between 1997 and 2017, to 7.7 million and it is predicted that nearly 11 million people could be living alone in twenty years’ time.
The changes to Buy-to-Let regulation have also resulted in landlords looking at how they can maximise rental yield. Houses of Multiple Occupancy have become a key area of focus. A combination of more people living alone and the increased rental yield means that this segment of the market has great potential to grow further.
At Saffron, we have introduced a series of niche HMO Mortgages designed to not only increase landlord’s income, but in the most efficient way possible creating new opportunities for intermediaries and their customers.
Our four new products form part of our expanding portfolio of specialist mortgages. The key features of the product are:
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.
Where to go for more details
Full product details can be found here.
If you have any questions please speak with our Business Development Mangers, who will be happy to help:
Holly Andrews: 01799 582885
Katie Sharpe: 01799 582923
Gemma Reynolds: 01799 582925
Brokers can easily submit a case via our online broker portal.
1 Nearly one in seven Britons could live alone by 2039, The Guardian April 2019