Pepper Money has launched a mortgage product for houses in multiple occupation (HMOs), aimed at supporting landlords and limited companies with at least 12 months of homeownership experience.
The product allows for mortgages or remortgages on HMOs with up to six bedrooms, provided the property has the right licence at the time of completion.
The HMO product is available for portfolios of up to 10 properties.
Rates start at 5.19%, with a maximum loan-to-value (LTV) of 75% on properties that have an energy performance certificate (EPC) rating of A to C.
Paul Adams, sales director at Pepper Money, said: “Our new HMO product is the latest in a series of new developments centred around supporting landlords.
“As a specialist lender providing specialised products, we know that landlords are operating within an increasingly complex regulatory environment and navigating affordability challenges which are affecting their behaviour.
“While traditional credit checks are valuable, our approach offers a broader view of financial health, promoting responsible lending and renting practices.”
Adams added: “HMOs play a vital role in the UK’s private rental market, offering an affordable and accessible option in the face of rising rental demand and a growing gap between the amount of supply available.
“Landlords are an essential part of a viable property market, and our latest product offering aims to provide specialist solutions to help landlords remain in the market.
“Pepper Money is committed to developing a broad range of products and services and working collaboratively with brokers, with a streamlined underwriting process, delivering competitive rates and high-quality service for a section of the market that is so often overlooked by high street lenders.”
