Metro Bank has officially launched into the HMO mortgage and Multi Unit Freehold Block (MUFB) markets, bringing a fresh wave of opportunity for UK landlords and property investors. This strategic move comes at a crucial time, as demand for HMO properties continues to rise due to ongoing rental supply shortages across the country. As property investors increasingly seek out HMOs and MUFBs in order to obtain maximum rental yields, Metro Bank’s new introduction is a very welcome addition to the HMO mortgage market. The new product range from the bank is geared for individual landlords as well as limited company landlords, with uniform lending terms across their whole Buy-to-Let product range.
What Metro Bank’s HMO Mortgage Launch Means for Landlords
Metro Bank’s entry into the HMO space aims to simplify and enhance the mortgage process for landlords seeking to expand or optimise their portfolios. Their offering is designed to meet the needs of today’s dynamic rental landscape.
Key highlights of Metro Bank’s HMO and MUFB mortgage products:
- Rates from 3.69% (both percentage and fixed fee options available)
- Maximum of 75% Loan to Value (LTV), falling to 70% for loans above £1 million
- Standard Buy-to-Let Interest Coverage Ratio and stress rate
- HMOs up to 6 tenants or MUFBs up to 6 units
- Each unit, if more than one, to be on a single Assured Shorthold Tenancy (AST)
- Applications accepted in personal names or via limited company
- Student lets and tenants on benefits acceptable
- Broad solicitor panel for streamlined legal processing
- Support for applicants with imperfect credit backgrounds
This degree of flexibility is a winner, especially for portfolio landlords who need to respond to the evolving realities of the rental sector.
Industry Expert Opinion from Oportfolio Mortgages
Louis Mason, Marketing Director at Oportfolio Mortgages, was pleased to see the introduction of Metro Bank’s HMO mortgage products:
“This is a significant and exciting development. Our landlord clients are consistently seeking new ways to enhance their portfolios and improve their returns, especially in the competitive HMO property market. Metro Bank’s competitive rates, flexible criteria, and willingness to consider a variety of tenant types, including students and benefit claimants, make this a powerful new solution. We’re excited to introduce this offering to our clients and help them access tailored finance for their investment needs.”
Why HMOs and MUFBs Are Growing in Popularity
As rental demand continues to exceed supply in many parts of the UK, HMO properties are increasingly seen as a way for landlords to boost rental income while meeting market needs. The ability to let rooms individually while maintaining high occupancy rates can significantly improve rental yields.
MUFBs present similar benefits whereby landlords can handle more units under one freehold and in a lot of cases reduce overheads and get flexibility.
How to Start an HMO Mortgage
Whether you’re a seasoned landlord or just starting out in the world of HMO property investment, Metro Bank’s entrance into the HMO mortgage space is an opportunity worth exploring. With flexible lending criteria and competitive rates, they’re making it easier for landlords to fund complex investments.
At Oportfolio Mortgages, we specialise in guiding landlords through their mortgage process, including HMO and MUFB. Our dedicated advisers will assist you to achieve the best from this new product range launched by Metro Bank.
Speak to Oportfolio Today
Do you want to take advantage of Metro Bank’s HMO mortgages? Get in touch with Oportfolio Mortgages today to discuss your buy-to-let mortgage options.
