The bank has introduced a new price category for medium HMOs of between seven and 10 rooms, offering a five-year fixed rate of 5.99% at up to 75% loan to value (LTV).
Loans are available from £200,000 to £5m, with a 3% arrangement fee and a 1% exit fee.
Castle Trust Bank’s TermTen proposition combines a 10-year term with a five-year fixed rate and interest-only payments.
The product is available to portfolio and first-time landlords, limited companies, individuals, expats and foreign nationals. It supports HMOs, residential properties, multi-unit freehold blocks (MUFBs) and holiday lets, with loans over £5m considered on a bespoke basis.
Anna Lewis (pictured), commercial director at Castle Trust Bank, said: “An HMO with seven rooms can present a different lending requirement from one with 15 rooms. Our new medium HMO category recognises that difference, helping brokers match pricing more closely to the property their client is financing.
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“Landlords need to consider both their monthly borrowing costs and their longer-term plans. TermTen gives them a way to manage both, while our broad lending criteria help brokers support clients with a wide range of properties and ownership structures.”
