Why we’re backing large Buy-to-Lets

See our new Buy-to-Let range including new large HMO and MUFB Buy-to-Let products here.
By Paula Mercer, Head of Sales
In our most recent Buy-to-Let updates last month – as well as cutting rates and introducing new 2-year and 7-year products – we unveiled a new large range.
This included the return of our Large HMO Fixed Rate products – 7 to 15 rooms, max LTV 75%, min loan £50,000 – max £1,500,00 and a new Large MUFB Product, 7-10 units, 70% LTV, min loan £50,000 – max £1,000,000.
After a challenging year for Buy-to-Let in general, why have we looked to the larger and – traditionally – more expensive options?
Simple; consumer demand and income protection for landlords.
Housing crisis
Now it isn’t a secret that the UK suffers from a lack of high-quality accommodation, both to rent or own, and filling that gap requires higher density homes and more mindful planning.
For renters, especially younger ones moving to city hubs for work or education, larger house shares offer that opportunity, in particular when it comes to affordability as the more sharers, the lower the price.
This helps meet the demand for rental properties in major cities.
With how our Buy-to-Let products interact with our bridging products as well, landlords are well placed to acquire and refurbish properties into large HMOs, or reposition their existing portfolio with refurbishment GDV and LTV finance.
Diversification
In a year where landlords have felt their yields come under pressure, Large HMOs and MUFBs offer important diversification.
Where single-occupancy tenancies can offer more risk, multi-occupancy homes and blocks allow landlords to spread risk across tenancies, potentially aiding affordability for the tenant as well by keeping costs lower across each tenant.
Creative solutions
A challenging environment requires creative solutions, and since we backed Buy-to-Let back to come back over the summer, we continually look to offer those through providing landlords with choice across our product range, and a mortgage for every type of investment and ambition.
See our new Buy-to-Let range including new large HMO and MUFB Buy-to-Let products here.