Kent Reliance for Intermediaries has made a number of changes to its buy-to-let (BTL) product range, lowering rates and raising the maximum number of beds from 10 to 20 for houses in multiple occupation (HMOs).
The changes were made in response to growing feedback from brokers seeking support for professional landlord clients looking for larger investment and diversification finance opportunities.
In Kent Reliance’s existing buy-to-let core range at 75% loan-to-value (LTV) rates were reduced by up to 0.30%.
The lender also introduced new 70% LTV buy-to-let limited edition products with rates from 4.59%.
Adrian Moloney (pictured), group intermediary director at Kent Reliance for Intermediaries, said: “We know from recent research carried out by BVA BDRC, that the average rental yield for HMOs are a full percentage point higher than the overall average rental yield; 6.3% for HMOs compared to an overall average yield of 5.3% so this is an attractive offering for experienced landlords looking to maximise their rental yields.
“This move also reflects the increasing professionalisation of the market where we are seeing seasoned property investors actively seeking to increase their portfolios against a backdrop of strong tenant demand with affordability challenges.”
He added: “From a tenant prospective, this is where HMOs come into their own as they are often a more affordable renting option as sharing quality accommodation with others can be cheaper than renting alone, you have the company of others should you want it but at the same time you have your own personal and private space.
“We’re seeing a number of good quality applications with high specifications coming through that reflect this growing trend.”
Wayne Gray, managing director at DMI Finance, said: “As an experienced buy to let broker, we are seeing greater market demand for HMOs as living costs and interest rates remain high so we welcome the news from Kent Reliance for Intermediaries on their latest offering as it looks to cater to the needs of investors seeking higher-yield opportunities.”
