New HMO/MUB Buy to Let Fee Options & Product Updates for Landlords

Enhanced Flexibility for Landlord Clients from Kensington

Kensington Mortgages, a leader in specialist mortgage lending, has announced several new fee options and enhancements across their HMO (House in Multiple Occupation) and MUB (Multi-Unit Block) Buy to Let product range. These changes are aimed at providing landlords with more flexibility, competitive rates, and tailored solutions—particularly benefiting those with varied portfolio requirements.

Latest Buy to Let Rate & Product Updates

Key highlights from Kensington’s updated Buy to Let range include new fixed-rate deals, fee structures, and assessment criteria—designed to help individual and limited company landlords maximise value and borrowing potential. The latest products and their key details are:

• Buy to Let Prime (Assessed at higher of initial payrate or 5%):
  • 5-year fixed, 75% LTV, 5% fee: 4.59% interest rate with free valuation
• Buy to Let Core (HRTP can use surplus earned or portfolio income for lower ICR):
  • 2-year fixed, 75% LTV, £4,000 fee: 5.39% interest rate
  • 2-year fixed, 75% LTV, No fee: 5.94% interest rate with free valuation
  • 5-year fixed, 75% LTV, 3% fee: 5.29% interest rate

For a comprehensive overview of rates, see the Kensington Buy to Let Product Guide.

Eligibility & Lending Criteria Changes

• Prime range is assessed using the higher of initial payrate or 5%, helping align affordability for varied borrowers.
• The Core range offers flexibility for ‘Higher Rate Tax Payers’ (HRTP) by allowing the use of surplus earned or portfolio income for improved Interest Coverage Ratio (ICR), supporting larger portfolios or higher-income landlords.
• Buy to Let rates are equally accessible for limited companies, making it easier for landlords operating under corporate structures.
• Term lengths up to 40 years, with no maximum age at end of term, accommodates longer-term investment strategies or mature applicants.

Important for Northern Ireland applicants: Maximum loan size is £500,000; free standard legals are not included in Northern Ireland.

Special Features & Advantages with Kensington

• No reliance on credit scoring—each application is individually assessed for added flexibility, especially for complex borrower profiles.
• No upfront application fees—reducing the initial cost barrier for investors.
• Assigned mandated underwriter from application through to completion—offering peace of mind and smoother processing.
• Generous term options and no maximum age cutoff at end of term—great for experienced investors looking for longevity.
• Free valuations available on selected products—helping reduce upfront costs.

Who Will Benefit Most?

• Professional landlords and portfolio investors seeking flexible assessment options, especially higher rate taxpayers or those with substantial rental income.
• Limited company landlords looking for competitive Buy to Let rates and products without additional pricing penalties.
• Applicants with complex incomes or credit histories requiring individual assessment over automated credit scoring.

Why Choose Kensington for Buy to Let Mortgages?

• Specialist understanding of landlord and property investor needs, particularly for HMOs and multi-unit blocks.
• Flexible and innovative product options, including high LTV, multiple fee structures, and bespoke lender criteria.
• Personalised support—dedicated underwriter and transparent process from start to finish.
• Competitive fixed-rate products with attractive incentives such as free valuations, tailored for both individual and corporate borrowers.

Expert Landlord Mortgage Guidance

If you’re considering expanding your property portfolio or seeking a better fit for your Buy to Let investments, Kensington’s new mortgage options could be ideal. Contact our expert mortgage advisers today for tailored advice on your specific needs and to access the most suitable Kensington products available right now!

FAQs: Kensington Buy to Let Product Update

1. Who qualifies for Kensington’s new Buy to Let products?These products are available to UK individual or limited company landlords, including those with HMO or multi-unit block properties, subject to Kensington’s lending criteria.
2. How do fee options affect the overall cost of my mortgage?Fee options allow you to choose between lower rates with higher upfront fees or higher rates with no/low fees. This can impact initial costs and long-term interest paid.
3. Is Kensington suitable for complex borrower scenarios?Yes. Kensington specialises in individually assessed cases, making them an excellent choice for borrowers with complex incomes, portfolios, or credit histories.
4. Can these products be used for properties in Northern Ireland?Yes, but products in Northern Ireland have a £500,000 maximum loan size and do not include free standard legals.
5. How can I apply or check my eligibility?Contact our mortgage brokerage team for a personalised assessment and to start the application process with Kensington.