YBS Commercial improves HMO mortgage product

YBS Commercial Mortgages has improved its Housing of Multiple Occupation (HMO) product to make it accessible to more landlords.

The changes, which have been implemented on the back of broker feedback, mean that landlords can now take out a product in their own name, rather than having the requirement for a limited company to be in place to benefit.

Geographical restrictions, which previously meant that applications would only be considered from select locations across the UK, have also been lifted.

The product, launched in May last year, is available for loans up to £1.5 million per property to borrowers with a minimum of one years’ experience as a HMO landlord.

HMOs are defined as properties rented to at least three people from different households, using shared facilities. Demand has grown significantly in this market, especially from students, who typically live in this style of accommodation.

Mike Davies, head of business development at YBS Commercial Mortgages, said:

“We’re really pleased to demonstrate our continued support for this sector, especially as we’ve seen the need for HMOs increase recently due to the rise in average rents outstripping wage inflation, making it difficult for young or low-income earners to rent a property exclusively.

We’re delighted to respond to broker feedback and market demand and make our product more accessible to a wider cross-section of landlords, and in turn, tenants will benefit.”