YBS Commercial adds HMO product to meet ‘growing demand’

The rate is 3.9 per cent, fixed for five years, on an interest-only basis, with a maximum loan-to-value of 75 per cent.

The product is offered to borrowers with at least one year’s experience as an HMO landlord, for loans of £500,000 to £1.5m. The maximum number of bedrooms allowed is 12, and the property must be let or intended to be let to professionals, key workers or students.

Applications will be considered from locations including London, Manchester, Birmingham and Bristol, depending on demand.

Mike Davies, head of business development at YBS Commercial Mortgages (pictured), said: “There’s growing demand for mortgages in this area from brokers and their clients. 

“We’re pleased to be giving investors additional choice when developing HMOs for students and those in higher education.

“The HMO market has evolved over 10 years to become mainstream for tenants and landlords, with a significant proportion of UK professional landlords owning one or more HMOs, and property standards increasing,” Davies said.