Leeds adds five year deals to bespoke HMO mortgage range

Leeds Building Society is updating its bespoke HMO* mortgage range for shared houses, adding new five year products after feedback from brokers.

The products, which will launch on 8 February, come with free standard valuation and £500 cashback.

The five year HMO deals include:

• 2.49% available up to 60% LTV (loan to value) with a £999 fee for small properties
• 2.69% available up to 70% LTV with a £999 fee for small properties
• 3.54% available up to 60% LTV with a £1,999 fee for large properties
• 3.84% available up to 70% LTV with a £1,999 fee for large properties

Matt Bartle, Director of Products at Leeds Building Society, said: “We became the only lender to offer specific products tailored to small and large HMOs when we launched in January. Since introducing the range, we’ve worked closely with our broker partners to refine our products to ensure they meet the needs of borrowers.

“Following broker feedback we’ve developed these new five year options for small and large HMOs, which we believe will meet the needs of landlords looking to diversify their portfolios and move into this sector.

“Additionally, insight from brokers revealed professional landlords often prefer to use their own legal advisers during the buying or remortgaging process. We’ve listened to brokers and introduced £500 cashback across our new five year HMO range, which could be put towards conveyancing costs should the landlord choose.”

In January, Leeds Building Society became the only lender to offer specific products tailored to small and large HMOs based on planning and licensing requirements.

A growing number of landlords are currently reviewing their property portfolios due to new regulations and tax changes.

Ends

Notes to editors

*Leeds Building Society defines an HMO (houses in multiple occupation) as an entire property, house or flat which is let to three or more tenants who form two or more households and who share a kitchen, bathroom or toilet.    

More homes are now subject to mandatory licensing under the new regulations. An HMO with five or more occupants, forming two or more separate households, needs a licence from the local council confirming the number of permitted occupants, number of rooms suitable for sleeping accommodation and minimum room sizes.

A small HMO can have up to and including six occupants and a large HMO more than six occupants.

Leeds Building Society operates throughout the UK and in Gibraltar and has assets of £19.5bn at 30 June (£17.3bn at 30 June 2017). The Society’s head office has been based in the centre of Leeds since 1886.

Key Features

Small HMO 5 Year Fixed Rates up to and including 31st May 2024

• 10% penalty free capital over-repayments permitted each year
• Tapered early repayment charges, 5 Year – 5/5/4/3/2% until 31/05/2024
• These products are available for purchase and remortgage applications
• These products are available for properties with up to and including 8 bedrooms
• These products are available for properties with up to and including 6 occupants
• £500 cashback paid upon completion
• £50,000 minimum loan

Large HMO 5 Year Fixed Rates up to and including 31st May 2024

• 10% penalty free capital over-repayments permitted each year
• Tapered early repayment charges, 5 Year – 5/5/4/3/2% until 31/05/2024
• These products are available for purchase and remortgage applications
• These products are available for properties with up to and including 8 bedrooms
• These products are available for properties with more than 6 occupants
• £500 cashback paid upon completion
• £50,000 minimum loan