Why HMOs & MUBs?

Houses of Multiple Occupancy (HMOs) - properties with a minimum of three tenants forming more than one household and sharing kitchen, bathroom and toilet facilities - can be a popular option for tenants and landlords. For individuals the rent is often more affordable and for landlords the yield can be higher than for a standard buy to let (BTL) property. A Multi-Unit Block is defined as one freehold title consisting of two or more self-contained units in a block, all with separate entrances. Like HMOS, yields for MUBs can be higher than yields for standard BTL property but it can be difficult to find a lender prepared to lend on such property.


Who is this product for?

  • Landlords who wish drive higher rental yields and reduce the risk rental voids when a tenant moves out
  • City centre and university locations where there is strong demand for rental from students or young professionals

Key Lending Criteria - HMO

  • One applicant must have at least 1 year’s landlord experience
  • Minimum valuation £100,000
  • Up to 8 bedrooms
  • Trading Limited Companies & SPVs accepted
  • Rental assessment at 130% for BRT payers and Limited Companies, 140% for HRT payers
  • No minimum income available
  • 40 year term available
  • All property types considered

Key Lending Criteria - MUB

  • One applicant must have at least 1 year’s landlord experience
  • Minimum valuation £175,000 in London & SE, £125,000 in all other regions. Valuation will be based upon the freehold of the whole block
  • Up to 5 self-contained units on a single freehold title. Flat only, no mixed units
  • Trading Limited Companies & SPVs accepted
  • Rental assessment at 130% for BRT payers and Limited Companies, 140% for HRT payers
  • No Minimum income
  • 40 year term available
  • All property types considered