Hampshire Trust Bank (HTB) has increased its maximum loan-to-value (LTV) ratio for eligible houses in multiple occupation (HMO) mortgages to 80%, expanding the funding options available to professional landlords.
The change will allow qualifying borrowers to access higher levels of leverage on HMO properties, potentially enabling them to retain more capital for acquisitions, improvements or other investments within their portfolios.
The revised limit is available to experienced professional landlords who meet HTB’s lending criteria and gives mortgage intermediaries an additional option when arranging finance for HMO investments.
The bank said the decision reflects a shift towards longer-term portfolio planning among professional landlords, with greater consideration being given to how individual investments contribute to overall portfolio performance and future borrowing capacity.
SUPPORTING PORTFOLIO INVESTMENT
Alex Upton, managing director of specialist mortgages and bridging finance at Hampshire Trust Bank, said: “HMOs are an important part of the professional landlord market, and we see that reflected in our conversations with brokers. What has changed is the way experienced landlords are approaching them.
“Increasingly, they’re thinking beyond an individual purchase and focusing on how each investment supports the long-term growth of their portfolio.
“HMOs play an important role within long-term portfolio strategies because they can deliver resilient income while helping meet demand for high-quality shared accommodation.
“Increasing maximum HMO lending to 80% LTV reflects the way experienced landlords are investing today, giving brokers greater flexibility to support clients who are thinking strategically about leverage, liquidity and future investment opportunities.
“As the market continues to evolve, we’ll continue developing our proposition to ensure brokers have the specialist support they need to help professional landlords achieve their long-term ambitions.”
Andrea Glasgow (pictured), sales director of specialist mortgages and bridging finance at Hampshire Trust Bank, said the increased LTV limit would help brokers structure funding around landlords’ wider investment requirements.
She added: “Every landlord’s strategy is different, which means every funding solution needs to reflect what they’re trying to achieve.
“Brokers are looking at how each lending decision supports a client’s wider investment plans, whether that’s retaining capital for the next acquisition, improving portfolio efficiency, or creating greater flexibility for future opportunities.
“Having access to 80% LTV on eligible HMO applications gives brokers another practical option when structuring those cases.
“Combined with our specialist underwriting, experienced decision-making and collaborative approach, it gives them greater confidence to build funding solutions around a client’s long-term objectives rather than simply a single transaction.”
