21 May 2021

YBS Commercial Mortgages has today (19 May 2021) launched a new product for landlords purchasing Housing of Multiple Occupation (HMOs).

The product, which is a further expansion of the lender’s buy-to-let range, comes at a competitive rate of 3.9%, fixed for five years, on an interest-only basis, with a maximum loan-to-value (LTV) of 75%.

YBS Commercial’s latest offering is available to borrowers with a minimum of one years’ experience as a HMO landlord, for loans from £500,000 up to £1.5 million per property. The property must have no more than 12 bedrooms, and be let (or intended to be let), to professionals, key workers or students.

Applications will be considered from select locations across the UK, based on analysis of demand, including London, Manchester, Birmingham and Bristol.


HMOs are defined as properties rented to at least three people from different households, using shared facilities. Demand has grown significantly in recent years in this market, especially from students, who typically live in this style of accommodation.

Mike Davies, head of business development at YBS Commercial Mortgages, said: “We’re really pleased to be adding this new product to our range, demonstrating our continued support to sectors being revived following the impact of Covid. We know there is a growing demand for mortgages in this area from both brokers and their clients, and we’re happy to be giving investors additional choice when they’re developing HMOs for students and those in higher education.

“The HMO market has evolved over the last 10 years, and is becoming mainstream for both tenants and landlords, with increasing standards of property.

“A significant proportion of UK professional landlords own one or more HMOs as part of their wider portfolio of assets, and they are attractive to investors, offering higher yields than standard buy-to-lets.”

Brokers can make enquiries by emailing CommercialLending@ybs.co.uk or by speaking with their local relationship director (contacts at www.ybs.co.uk/commercial/meet-the-team).