Leeds Building Society has announced a new mortgage range for shared houses, which it claims is the first of its kind.
The building society has extended its investment lending to include portfolio landlords, holiday lets, second homes and products tailored to small and large HMOs based on planning and licensing requirements.
The new products include a 60 per cent LTV at 1.99 per cent with a £999 fee for small properties, a 70 per cent LTV at 3.59 per cent with a £1,999 fee for larger properties, and another notable addition is a 75 per cent LTV at 3.84 per cent, with a fee of £1,999 for large properties.
Additionally, the firm has increased both its LTV and maximum loan size, to 75 per cent and £750,000 respectively, and a maximum of eight bedrooms.
A growing tax burden and additional regulation are among the reasons for an increasing number of landlords reviewing their portfolio and seeking new opportunities with different property types, according to the building society.
Leeds Building Society director of products Matt Bartle says: “Remaining responsive to the ongoing tax and regulatory changes which affect the BTL market means we keep our proposition under review, whether that’s for portfolio landlords, holiday let borrowers or the owners of HMO properties.
“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.
“Changes to the BTL 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”
Source: Mortgage Strategy By Jake Carter
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