The Leeds Building Society has launched a new bespoke mortgage range for shared houses.

The society says it is the only lender to offer specific products tailored to small and large HMOs (houses in multiple occupation) based on planning and licensing requirements.

It has extended its investment lending to include portfolio landlords, holiday let, second homes and HMOs.

The mutual is using specialist valuers and underwriters for all HMO applications.

The new range is made up of two year fixed rate deals for small or large HMO properties – highlights include:

• 1.99% available up to 60% LTV (loan to value) with a £999 fee for small properties
• 3.59% available up to 70% LTV with a £1,999 fee for large properties
• 3.84% available up to 75% LTV with a £1,999 fee for large properties

“In addition to the bespoke products we’ve developed for this specialist market, we’ve refined and improved our lending criteria to align with planning and licensing requirements for the two types of HMO,” said Matt Bartle, the Leeds Building Society’s director of products.

“We also recognise the higher costs of buying and maintaining larger properties – for example, we’ve increased both LTV (loan to value) and maximum loan size, to 75% and £750,000 respectively, compared to our standard buy-to-let mortgages, and the maximum number of bedrooms is now eight.

“Remaining responsive to the ongoing tax and regulatory changes which affect the buy-to-let market means we keep our proposition under review, whether that’s for portfolio landlords, holiday let borrowers or the owners of HMO properties.

“We’ve used our extensive experience and expertise within the buy-to-let market to develop this unique HMO proposition for borrowers who are currently under-served by the wider market.

“More landlords seeking higher yields are likely to move into this specialist area, which is a well-established part of the Private Rented Sector, particularly in university towns and urban areas with higher housing costs. A healthy housing market needs a mix of tenures, including homes for rent.

“Changes to the buy-to-let market over the past few years are driving greater ‘professionalism’ among landlords and we support the government’s aim of improving the quality of all rental stock, including HMOs, to help more people to have the home they want.”