Kent Reliance for Intermediaries has made a series of changes to its buy-to-let product range, including lowering rates and raising the maximum beds from 10 beds to 20 for HMO properties.
This is in response to the growing feedback from brokers who are seeking support for their professional landlord clients on the look out for larger investment and diversification finance opportunities.
Changes include:
- On the existing buy-to-let core range, 75% LTV rates have been reduced by up to 30bps
- Introduction of new 70% LTV buy-to-let limited edition products with rates from 4.59%
- For HMO applications up to six beds, ICR calculations are based on 125% for limited companies and 140% for personal ownership, whilst for large HMO applications up to 20 beds, ICR calculations are based on 145% for limited company and 175% for personal ownership
- HMO Remortgages are allowed within six months of valuation if improvements works have taken place.
Adrian Moloney, group intermediary director at Kent Reliance for Intermediaries, said: “We know from recent research carried out by BVA BDRC, that the average rental yield for HMOs are a full percentage point higher than the overall average rental yield; 6.3% for HMOs compared to an overall average yield of 5.3% so this is an attractive offering for experienced landlords looking to maximise their rental yields.
“This move also reflects the increasing professionalisation of the market where we are seeing seasoned property investors actively seeking to increase their portfolios against a backdrop of strong tenant demand with affordability challenges.
“From a tenant prospective, this is where HMOs come into their own as they are often a more affordable renting option as sharing quality accommodation with others can be cheaper than renting alone, you have the company of others should you want it but at the same time you have your own personal and private space.
“We’re seeing a number of good quality applications with high specifications coming through that reflect this growing trend.”
