Castle Trust Bank enhances HMO range
The bank has introduced a new price category for medium HMOs of between seven and 10 rooms, offering a 5-year fixed rate of 5.99% at up to 75% LTV.
Castle Trust Bank has enhanced its TermTen buy-to-let (BTL) proposition, in a bid to further support its broker partners.
The bank has introduced a new price category for medium houses in multiple occupation (HMOs) of between seven and 10 rooms, offering a 5-year fixed rate of 5.99% at up to 75% loan-to-value (LTV).
Loans are available from £200,000 to £5m, with a 3% arrangement fee and a 1% exit fee.
The new category sits between small HMOs of up to six rooms and large HMOs of between 11 and 15 rooms, helping brokers match pricing more closely to the size of their clients’ properties.
Castle Trust Bank’s TermTen proposition combines a 10-year term with a 5-year fixed rate and interest-only payments.
It is available to portfolio landlords, first-time landlords, limited companies and individuals, as well as expats, foreign nationals and borrowers with complex ownership structures.
Alongside HMOs, the range supports standard residential properties, multi-unit freehold blocks (MUBs) and holiday lets.
The bank uses aggregated values on blocks of flats with up to ten units and assesses holiday lets on holiday let income.
Loans above £5m can also be considered, subject to bespoke pricing.
Anna Lewis (pictured), commercial director at Castle Trust Bank, said: “An HMO with seven rooms can present a different lending requirement from one with 15 rooms.
“Our new medium HMO category recognises that difference, helping brokers match pricing more closely to the property their client is financing.
“Landlords need to consider both their monthly borrowing costs and their longer-term plans.
“TermTen gives them a way to manage both, while our broad lending criteria help brokers support clients with a wide range of properties and ownership structures.”
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