Castle Trust Bank has introduced a new medium HMO price category within its TermTen buy-to-let proposition, covering properties of between seven and ten rooms.
The new tier offers a five-year fixed rate of 5.99% at up to 75% LTV, with loans available from £200,000 to £5m, a 3% arrangement fee and a 1% exit fee. It sits between the bank's existing small HMO category of up to six rooms and its large HMO category of between 11 and 15 rooms.
Castle Trust Bank's TermTen proposition combines a ten-year term with a five-year fixed rate and interest-only payments. It is available to portfolio landlords, first-time landlords, limited companies, individuals, expats, foreign nationals and borrowers with complex ownership structures.
Alongside HMOs, the range supports standard residential properties, multi-unit freehold blocks 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 be considered subject to bespoke pricing.
Anna Lewis, commercial director at Castle Trust Bank (pictured), 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."
