Pepper Money Launches Dedicated HMO Mortgage Product for Landlords

Pepper Money, a specialist mortgage lender, has introduced a new dedicated mortgage product specifically designed for landlords of Houses in Multiple Occupation (HMOs). This new offering aims to provide targeted support for investors navigating the complexities of the HMO market.

The new product is available to individual landlords and limited companies who have at least 12 months of experience in homeownership. It facilitates both mortgages and remortgages on HMO properties with up to six bedrooms. A key requirement is that the property must be fully licensed at the point of completion.

Key Benefits

Landlords with a portfolio of up to 10 properties can access this new HMO product. Rates for the new offering start from 5.19%, with a maximum loan-to-value (LTV) of 75%. Notably, these competitive rates are available for properties that boast an Energy Performance Certificate (EPC) rating of A to C, encouraging investment in more energy-efficient homes.

Paul Adams, Sales Director at Pepper Money, emphasized the strategic importance of this launch: "This product aims to address the challenges landlords face in a complex regulatory environment and to support the vital role HMOs play in the UK's private rental market."

Eligibility Criteria

This new HMO mortgage product from Pepper Money underscores its commitment to providing tailored financial solutions that meet the evolving needs of specialist landlords and support the diverse landscape of the UK's private rental sector.

Application Process