Landbay cuts interest rates for HMO and MUFB properties

Landbay has unveiled a reduction in interest rates for its five-year fixed loans, specifically targeting houses in multiple occupation (HMO) and multi-unit freehold blocks (MUFB).

The revised rates start at 4.89%, marking a fall of up to 0.25%.

The products are aimed at small scale HMOs and MUFBs, accommodating up to six bedrooms or units – and first-time landlords.

‘Enhanced HMO/MUFB range supports landlords’

The lender’s sales and distribution director, Rob Stanton, said: “Our enhanced HMO/MUFB range supports landlords in an important and ever-growing part of the market, especially with a rising student population and the clear challenges facing residential buyers.

“With support for those operating in trading companies or for first-time landlords looking to purchase an HMO or MUFB, we are really pleased to be able to cover all bases with our reduced rates.”

He adds: “As we continue further into the year, we’ll continue to ensure our range remains competitive and provides valuable opportunities for both our broker partners and their landlord clients across the country.”

Innovative variable fee structure

Landbay’s innovative variable fee structure accompanies the rate cut, offering a sliding scale from 3% to 6%.

This flexibility allows borrowers to tailor their fees, achieving a balance between a favourable rate and meeting affordability criteria.

Complementing this range, the lender recently introduced fee-free five-year fixed rate products.

These include a standard loan at 5.69%, capped at 75% loan-to-value (LTV) with a ceiling of £1.5 million.

There’s also an Automated Valuation Model (AVM) variant, also at 5.69%, but with a 70% LTV and a maximum property valuation of £750,000.

Lender’s product highlights

The lender’s product highlights include:

• A small HMO/MUFB five-year fix is now available at 4.89% for up to 65% LTV, accompanied by a 6% fee
• Another option stands at 4.99% for up to 75% LTV, also with a 6% fee
• There’s another rate of 5.79% for up to 75% LTV which comes with a 3% fee
• New landlords can access a 5.39% rate for up to 75% LTV, with a 5% fee
• Trading companies can secure a 5.39% rate for up to 75% LTV, subject to a 5% fee.

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