Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Castle Trust Bank Launches New Medium HMO Mortgage Category

Castle Trust Bank has enhanced its TermTen buy-to-let proposition by introducing a new price category for medium-sized houses in multiple occupation (HMOs). The new offering targets HMOs with between seven and ten rooms, providing a five-year fixed rate of 5.99% at up to 75% loan to value (LTV).

The TermTen product features a 10-year term with a five-year fixed rate and interest-only payments. Loans are available from £200,000 to £5 million, with a 3% arrangement fee and a 1% exit fee. For loans over £5 million, bespoke terms may be considered.

This product is open to portfolio and first-time landlords, limited companies, individuals, expats, and foreign nationals. It supports a range of property types, including HMOs, residential properties, multi-unit freehold blocks (MUFBs), and holiday lets.

The introduction of the medium HMO category is designed to help brokers match pricing more closely to the specific size of the property being financed. This update may be relevant for letting agents and inventory clerks working with landlords who manage mid-sized HMOs, as it could impact financing options and property management strategies.