Landbay has launched small houses in multiple occupation (HMO) remortgage products within its premier range, offering fixed-rate options for landlords managing multi-room properties. The new products cover five-year terms at 70% loan-to-value (LTV) with rates starting at 4.84%, according to Mortgage Finance Gazette (13 April 2026). The lender is positioning this as a response to strong remortgage demand among specialist property types, including small HMOs.

According to Landbay (13 April 2026), the small HMO products cover properties with up to six bedrooms. The lender offers three pricing tiers to balance rate and upfront cost: 4.84% with a 5% fee, 5.24% with a 3% fee, and 5.64% with a 1% fee. Valuation costs are fixed: £750 plus £199 administration fee for properties up to £400,000, rising to £2,150 plus £199 for properties between £1.8 million and £2 million. These specifics matter when you are calculating your true borrowing cost - which rate and fee combination works depends on your property value, your planned mortgage term, and how long you expect to hold the property.

Rob Stanton, sales and distribution director at Landbay, stated: "In the current market, we are seeing brokers and their landlord clients place a clear focus on managing existing borrowing and ensuring portfolios remain sustainable over the longer term." He added that remortgage activity is particularly strong for specialist property types like small HMOs, and these products give "brokers a broader range of options when supporting landlord clients" (Mortgage Finance Gazette, 13 April 2026).

For operators running furnished HMOs or serviced rooms, the remortgage conversation is often about one thing: keeping your portfolio healthy enough to grow. If your existing mortgage is ending, or you have accumulated equity, remortgage options let you lock in longer-term certainty - five-year fixed terms mean predictable monthly costs, which is a practical advantage when occupancy rates shift seasonally or when you need to invest in refurbishment to meet guest expectations.

The 70% LTV ceiling means you need at least 30% equity in the property - a realistic threshold for operators who have owned their HMOs for a few years and have built some equity. It also signals that the lender sees small HMOs as a manageable risk, which matters for the wider market: more lender appetite means more choice for you and your broker.

What works for your property depends on the numbers. If your property value sits just above a fee tier threshold, the valuation cost difference could swing your decision between the 4.84% and 5.64% options. Speak to your mortgage broker - they can run the math on your specific situation and work out which combination of rate, fee, and term delivers the best cost over the period you plan to hold the property. Don't assume the lowest rate is always the cheapest option when you factor in upfront fees and valuation costs.