The Saffron Building Society has launched a range of niche buy-to-let mortgages aimed at experienced landlords wanting to capitalise on renting Houses in Multiple Occupation (HMO).

The four new products form part of Saffron’s expanding portfolio of specialist mortgages.

Features include the following:

• Small HMO buy-to-let: 3.37% fixed until 31.10.2021, 75% LTV (two-year)
• Large HMO buy-to-let: 3.67% fixed until 31.10.2021, 65% LTV (two-year)
• Small HMO buy-to-let Light Refurb: 3.64% (SVR-2.0%), three-year discount, 75% LTV
• Large HMO buy-to-let Light Refurb: 3.94% (SVR-1.7%), three-year discount, 65% LTV

The small HMO products are designed for experienced buy-to-let investors looking to purchase their first HMO property (maximum four tenants), add to their existing portfolio of HMO properties or re-mortgage an existing HMO mortgage. The Large HMO alternatives relate to properties designed to accommodate up to six tenants.

Wider options for landlords include HMO products where properties require a level of light refurbishment prior to renting the property. This may be cosmetic work, work to meet HMO regulation or light internal structural work to create additional bedrooms.

In addition to the new HMO mortgage options Saffron is introducing an improved 3.44% (SVR-2.2%) three-year discount buy-to-let light refurbishment product with an LTV of 75% giving even further choice to those wishing to secure an income from rental property.

These new mortgages are open to applications from private landlords or landlords operating as a limited company.

Anita Arch, the Saffron Building Society’s head of mortgage sales, said: “The recent changes to buy-to-let regulation have resulted in landlords looking at how they can maximise rental yield – Houses in Multiple Occupation have become a key area of focus.

“The HMO products we’ve introduced are designed to not only increase landlord’s income, but in the most efficient way possible creating new opportunities for intermediaries and their customers.”