YBS Commercial enhances HMO proposition

YBS Commercial Mortgages has improved its houses in multiple occupation (HMO) offering, launching new products according to property size and making them accessible to more borrowers. 

The lender has increased the maximum LTV to 75% based on the property’s market value or vacant possession value, whichever is lower, for HMOs comprising up to six bedrooms. This is up from a previous limit of 65% of market value or 75% of vacant possession value.

Borrowers can now benefit from a five-year fix at a reduced rate of 5.45%, down from 5.65%, up to 75% LTV.

For HMOs with more than seven bedrooms, the maximum LTV is now 70% of market value, allowing landlords to benefit from a five-year fix from at 5.65% up to 70% LTV.

The changes also mean that landlords can now borrow up to £3 million (was £1.5 million) per property and the product is available for HMOs with up to 20 bedrooms (was 12). 

There is also an increase to the maximum exposure secured on HMOs (which a customer can hold with YBS Commercial Mortgages) to £10 million, up from £5 million, subject to demonstrating a successful track record as a HMO landlord. 

Angela Norman, managing director at YBS Commercial Mortgages, said: “We’re really pleased to demonstrate our continued support for landlords in this sector, especially as we’ve seen the need for HMOs increase in recent years due to the rise in average rents outstripping wage inflation, making it difficult for young or low-income earners to rent a property exclusively.
 
“We’re delighted to tailor our offering – based on feedback from brokers – and making our products more accessible to a wider cross-section of landlords, as well as allowing them to borrow more.

“These changes demonstrate our continued commitment to ongoing improvements which benefit the commercial market and all our brokers and customers.”