Two types of products are available – a small HMO deal designed for experienced BTL investors looking to purchase their first HMO property for up to four tenants, and the large HMO alternatives relating to properties designed to accommodate up to six tenants.
The small HMO two-year fixed is at 3.37 per cent at up to 75 per cent loan-to-value (LTV) and a large HMO two-year fix available at 3.67 per cent at up to 65 per cent LTV.
There are also two three-year discount light refurbishing products, a small HMO BTL at 3.64 per cent at 75 per cent LTV and a large HMO BTL at 3.94 per cent at 65 per cent LTV.
Additionally, Saffron has introduced an improved 3.44 per cent three-year discount BTL light refurbishment product with an LTV of 75 per cent 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.
Anita Arch, head of mortgage sales at Saffron (pictured), said: “The recent changes to BTL regulation have resulted in landlords looking at how they can maximise rental yield – HMOs have become a key area of focus.
“The HMO products we’ve introduced are designed to not only increase landlord’s income, but in the most efficient way possible creating new opportunities for intermediaries and their customers.”