The quest by landlords for increased profitability within their portfolios is not going away; in fact as a series of regulatory and political measures have hit the ability of those properties to make a profit, it’s not surprising that professional landlords in particular are seeking more bang for their buck.

That has led to far greater interest in HMOs but also multi-unit blocks (MUBs) which have the potential to deliver greater profit if, of course, the landlord can square off the property with tenant demand, and hit the sweet spot in the local area.

For us, MUB criteria needs to work for both the borrower and us as a lender. This is why we define them as freehold properties with up to 10 self-contained units. We don’t stress a minimum size for each individual unit but of course they must be habitable, and studio flats and multiple houses are acceptable.

From our perspective as a specialist lender tailoring our proposition to the more professional/portfolio landlord demographic, we also have a specific product range covering both MUBs and HMOs.

The products are offered at both 65% and 75% LTV with fixed-rates priced between 3.59-4.09% with a rental calculation currently of 125% at 5.9%, and also a lifetime tracker option at 3.90% (LIBOR plus 3.3%) with a rental calculation of 125% at 5%.

Our aim is to work with advisers representing both experienced MUB landlords, and those new to the sector, to ensure the client is getting the most out of their asset and to help them deliver the profitability they need on each and every unit.