Landbay has launched small HMO (house in multiple occupation) remortgage products within its Premier range - its specialist product tier for complex properties. The products cover properties with up to six bedrooms on five-year fixed rate terms. Maximum LTV (loan-to-value) is 70%, according to Mortgage Solutions (Shekina Tuahene, 13 April 2026).

What the products look like

There are three fee and rate combinations. All figures are sourced from Mortgage Solutions, 13 April 2026.

5% fee: rate of 4.84%

3% fee: rate of 5.24%

1% fee: rate of 5.64%

Alongside the rate options, Landbay has introduced fixed valuation fees across all small HMO products. For properties valued up to £400,000, the fee is £750 plus a £199 administration fee. At the top end - properties valued between £1,800,001 and £2m - the valuation fee rises to £2,150 plus the £199 admin charge.

Knowing your valuation cost upfront matters when you are comparing the true cost of a remortgage. A remortgage means switching your existing mortgage to a new deal, usually to get a better rate or release equity. Hidden or variable valuation fees can distort that comparison.

Why this matters for HMO operators

Rob Stanton, sales and distribution director at Landbay, said clients were putting a "clear focus on managing existing borrowing and ensuring portfolios remain sustainable over the longer term." (Mortgage Solutions, 13 April 2026.)

He added: "Remortgage activity is therefore a key area of demand, particularly for more specialist property types such as small HMOs." (Mortgage Solutions, 13 April 2026.)

That lines up with what a lot of HMO operators are telling me. Rates from 2021 and 2022 have long expired. Many landlords sitting on standard variable rates are paying well above 6%. A five-year fix at 4.84% - even with a 5% fee - will be worth modelling for anything above a £200,000 loan.

Landbay had already added small HMO purchase products to the Premier range the month before this launch (Mortgage Solutions, 13 April 2026). The remortgage addition completes the picture for existing portfolio holders, not just those buying.

What HMO landlords should check before applying

This is a BTL (buy-to-let) product, which means standard BTL underwriting applies. But HMOs carry extra layers. Before you approach a broker, check the following.

First, check your licence. Most councils require a valid HMO licence before a lender will proceed. If your licence is due for renewal, start that process now. Lenders will not wait.

Second, check your council's definition of a small HMO. Landbay defines small HMO as up to six bedrooms. But some councils - particularly those operating Article 4 directions, which remove permitted development rights and require planning permission for HMO conversions - have their own thresholds. The council definition and the lender definition may not match.

Third, consider whether a five-year fix suits your exit strategy. If you plan to sell or refinance again within three years, the early repayment charges on a five-year product could offset the rate benefit. Run that scenario before committing.