Landbay has unveiled a new range of buy-to-let products, with a specific focus on enhancing its HMO offering.

The product changes will mean small HMOs will be treated as standard properties, while the minimum property value will also be reduced to £120,000.

Highlights of the range include:

• Two-year fixed rates from 3.09% @ 75% LTV (now including small HMOs of six bedrooms or less)
• Five-year fixed rates from 3.59% @ 65% LTV
• Trackers from 3.10% + LIBOR (3.62% current rate)
• Two-year fixed for large HMOs (seven bedrooms or more) from 3.59%
• No ERC trackers from 3.10% + LIBOR (3.62% current rate)

Paul Brett, managing director of intermediaries at Landbay, said: “HMOs can offer extremely attractive rental yields, but letting out one property to multiple tenants does come with its complexities. That doesn’t however mean the lending criteria always needs to be, especially when managed by a specialist lender.

“Landlords have had a job on their hands coming to terms with recent tax and regulatory reform, and many experienced investors have been reviewing their portfolios, increasingly looking to HMOs to boost rental income and protect profits. I hope these changes will be well received by any broker with a HMO case to place.”