Tiuta aims to ease HMO funding drought with 8.99% fixed rate
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The product is for both purchases and remortgages of HMOs and is accessible to individuals and limited companies.
It is exclusively available through Commercial Processing UK, the joint venture of Omega and Commercial Mortgage Solutions.
Guy Garrard, head of business development at Tiuta, says: "Follow-ing our increase in bridging LTVs and launch into secured loans, we are offering facilities not only to potential purchasers of HMOs but also to existing owners disenfranchised by the dearth of remortgage funding.
"This type of funding has almost dried up and we are delighted to be able to offer investors and brokers the opportunity to take advantage of the regeneration of this sector."
But Geoff Laird, principal of Buy to Let Funding Services, does not think the deal is competitive.
He says: "There are lenders offering better deals. I recently did a deal which was 3.25% over the Bank of England base rate for 25 years at 60% LTV."
But he says it is good to see lenders still offering HMO deals.
He adds: "The market has almost dried up. A lot of HMOs were used for people claiming housing benefit but once legislation changed and the money went direct to occupants, a lot of landlords started to incur arrears which affected funding."
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