Feature of the Week

HMO Scenario: 4 Tenants, 1 Solution

For landlords stepping into the HMO space, Metro Bank offers straightforward criteria, and a proposition designed to support a wide range of tenant types. Here’s an example of the type of case we can support:

Case scenario

A landlord is purchasing a 4-bed HMO, fully let to single tenants – all students – each on their own AST in personal names. They already own one buy to let and have a year of landlord experience. The property is fully let and self-funding.

This is exactly the kind of scenario supported under Metro Bank’s new criteria.

• Property type: 4 bed HMO
• Tenant profile: 4 single tenants, all students
• Tenancy agreements: Individual ASTs in tenants’ personal names
• Landlord experience: Owns 1 other buy to let, 1 year of landlord experience
• Occupancy: Fully let and self-funding
• Metro Bank solution: Supported under new HMO/MUFB proposition

For full details, please refer to our Mortgage Lending Criteria Guide and Product Guides.

We’ve launched into HMOs and MUFBs

We’re excited to announce our entry into the HMO (Houses of Multiple Occupation) and MUFB (Multi-Unit Freehold Block) markets – unlocking more options for your personal and limited company customers.

With rental demand continuing to outstrip supply in many UK regions, more landlords are turning to HMOs and MUFBs to maximise yields and meet tenant demand. As an award-winning specialist lender, we understand how important consistency and simplicity is to brokers and landlords, this is why our criteria is consistent across our entire Buy to Let range.

So, how can we help?

• Rates from 3.69% (% and fixed fee options available)
• Maximum 75% LTV (70% LTV for loans greater than £1m)
• Standard BTL ICR and stress rates apply
• Maximum 6 tenants for HMO, 6 units for MUFB (each unit must be on a single AST)
• Available on both personal names or limited company
• Student Lets and Tenants on benefits can be considered
• Broad solicitor panel
• Less than perfect credit profiles considered

For full details, please refer to our Mortgage Lending Criteria Guide and Product Guides.