Leeds BS cuts rates on large HMO deals

The rate reductions will launch on 9 August and include a 75 per cent loan to value (LTV) deal at 3.39 per cent, and a 70 per cent LTV deal at 3.34 per cent.

Both products come with £500 cashback upon completion, a free valuation and a £1,999 product fee.

Over payments of up to 10 per cent per year are also permitted and there are sliding early repayment penalties.

The mutual launched its range for large HMOs in January, noting that it was tailored based on planning and licensing requirements. It has a similar offering for smaller HMOs.

Leeds BS defines an HMO as an entire property, house or flat which is let to three or more tenants who form two or more households and who share a kitchen, bathroom or toilet.

A large HMO can have more than six occupants.

Matt Bartle, director of products at Leeds Building Society, (pictured) said: “Our rate reductions across our large HMO range is a further example of the support we offer to borrowers who are currently under-served by the wider market.”