As landlords seek more bang for their property ‘buck’ we are seeing a growing interest in not just higher-yielding HMO properties but also those we would define as multi-unit blocks (MUB).

For Fleet Mortgages, an MUB is defined as a property split into three, up to a maximum of 10, self-contained units on a single freehold title. Clearly, there is some significant scope for increased rental yield from such properties but your landlord clients, particularly those new to this part of the market, should be aware of what they are purchasing into.

While not necessarily over-complicated, MUBs are certainly a step up from a two-up/two-down residential property with one set of tenants, and therefore it’s important that a landlord client has the wherewithal and market experience to be able to get the most out of these investments.

It’s for this reason that we have a specific ‘experience’ criteria measure when it comes to MUBs which means the primary applicant must have owned a standard BTL property for at least three years, or a HMO property for two years.

We also have a specific MUB product range and we have an experienced underwriting team who can work through the details of cases which, as mentioned, can be rather more complicated than standard buy-to-lets.

That said, the benefits are there to be seen and, particularly for portfolio landlords, looking to develop in this direction, there is a major opportunity to deliver quality housing for quality tenants, and to greatly increase the overall income received.

Advisers wishing to learn more about MUBs, and how Fleet Mortgages can support their clients in this area, should not hesitate to contact us.

Fleet Mortgages’ full range of products are available to view here.