"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"
- Angela Norman - YBS Commercial
YBS Commercial Mortgages has announced that it has enhanced its Houses in Multiple Occupation (HMO) offering, rolling out a series of changes that expand lending potential and tailor products according to property size.
Among the key updates, the lender has increased the maximum loan-to-value (LTV) ratio to 75% of a property’s market value or its vacant possession value, whichever is lower, for HMOs with up to six bedrooms. Previously, the maximum was set at 65% of market value or 75% of vacant possession value. Borrowers in this category now have access to a five-year fixed rate of 5.45%, down from 5.65%.
For larger HMOs, those with seven bedrooms or more, the maximum LTV has been raised to 70% of market value. These landlords can now benefit from five-year fixes starting at 5.65% up to the new LTV threshold.
Additionally, the maximum loan amount per property has been doubled from £1.5 million to £3m. The criteria have also expanded to include HMOs with up to 20 bedrooms, an increase from the previous 12-bedroom limit.
YBS Commercial has also adjusted its maximum exposure cap for HMO lending. Landlords can now hold up to £10m in HMO loans with the lender, provided they can demonstrate a successful track record in managing such properties, up from the previous £5m limit.
HMOs (defined as properties let to at least three tenants from different households who share common facilities) have seen a rise in demand in recent years. The model is particularly common among students and younger renters seeking shared accommodation options in response to rising private rental costs.
“We’re really pleased to demonstrate our continued support for landlords in this sector,” said Angela Norman, managing director at YBS Commercial Mortgages. “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.”
Norman added, “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."
