Hampshire Trust Bank (HTB) has raised the maximum loan-to-value (LTV) on eligible houses in multiple occupation (HMO) mortgages to 80%. The higher level of HMO lending is available to professional landlords who meet the bank’s lending criteria.
HTB says the change gives brokers more room when structuring finance for eligible applications. It adds that experienced landlords are putting more weight on long-term portfolio planning as the HMO market develops.
“HMOs are an important part of the professional landlord market, and we see that reflected in our conversations with brokers,” said Alex Upton, managing director of specialist mortgages and bridging finance at Hampshire Trust Bank (pictured).
“What has changed is the way experienced landlords are approaching them. Increasingly, they’re thinking beyond an individual purchase and focusing on how each investment supports the long-term growth of their portfolio.
“HMOs play an important role within long-term portfolio strategies because they can deliver resilient income while helping meet demand for high-quality shared accommodation. Increasing maximum HMO lending to 80% LTV reflects the way experienced landlords are investing today, giving brokers greater flexibility to support clients who are thinking strategically about leverage, liquidity and future investment opportunities.
“As the market continues to evolve, we’ll continue developing our proposition to ensure brokers have the specialist support they need to help professional landlords achieve their long-term ambitions.”
“Every landlord’s strategy is different, which means every funding solution needs to reflect what they’re trying to achieve,” added Andrea Glasgow, sales director of specialist mortgages and bridging finance at Hampshire Trust Bank.
“Brokers are looking at how each lending decision supports a client’s wider investment plans, whether that’s retaining capital for the next acquisition, improving portfolio efficiency, or creating greater flexibility for future opportunities.
“Having access to 80% LTV on eligible HMO applications gives brokers another practical option when structuring those cases. Combined with our specialist underwriting, experienced decision-making and collaborative approach, it gives them greater confidence to build funding solutions around a client’s long-term objectives rather than simply a single transaction.”
