Landbay has expanded its Premier range with new small HMO remortgage products, giving landlords another specialist refinancing route at a point when shared housing remains one of the few areas still offering stronger income potential.
The lender said the new products are available on properties with up to six bedrooms at up to 70 percent loan to value, all on five-year fixed terms. Pricing starts at 4.84 percent with a 5 percent fee, rising to 5.64 percent with a 1 percent fee.
Landbay has also published fixed valuation fees for the range, starting at £750 plus a £199 administration fee on properties worth up to £400,000 and rising to £2,150 plus the same fee on homes valued up to £2 million.
Small HMOs remain one of the few higher-yield options
For landlords, the significance is less about one launch in isolation and more about where lender appetite is still strongest. Standard buy-to-let remains viable, but shared housing continues to attract lenders because income is often stronger and demand is usually more resilient.
Landlord Knowledge has already reported that HMO licence applications have climbed sharply and that lenders are still launching HMO-focused mortgage products. Landbay’s latest move fits that pattern. The warning for landlords is that higher gross yields do not mean lower risk – HMOs still bring tighter licensing, management and compliance pressures.
Why remortgage flexibility matters now
Landbay said the launch reflects demand from brokers and landlord clients who are focused on managing existing borrowing and keeping portfolios sustainable over the longer term. That is a notable shift. Much of the market conversation this year has been about fresh purchases, but in reality many landlords are still trying to refinance efficiently rather than expand.
In that sense, the product structure matters. Different fee options mean landlords can trade upfront cost against pay rate depending on how long they expect to hold the property and how cash flow looks across the wider portfolio.
This follows Landlord Knowledge’s recent warning on HMO application mistakes, which showed that more activity in the shared housing market also means more room for costly compliance errors. The extra mortgage choice is welcome, but landlords moving into HMOs or refinancing them still need to treat licensing and paperwork as part of the investment case, not an afterthought.
Landbay’s announcement also suggests some specialist lenders still see room to grow even while mainstream product availability has been uneven. That should help experienced landlords with established HMO stock, but it may do less for newer entrants once valuation fees, broker costs and compliance spending are added together. Details of the specialist lender’s wider offering are available on Landbay’s website.
What this means for landlords
- If you own small HMOs: New remortgage options may make it easier to refinance without moving back into standard products.
- If you’re comparing deals: Look beyond headline rate – fee structure and valuation cost can change the real cost quickly.
- Watch for: More specialist lenders targeting HMOs while mainstream lenders stay cautious.
- Bottom line: Finance for smaller HMOs is still available, but compliance risk remains part of the price of chasing stronger yields.
Editor’s view
Landbay is backing a corner of the market where landlords can still make the numbers work. That makes sense. But every extra lender willing to back HMOs should remind landlords that the real challenge is not just financing the property – it is running it compliantly.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 14 April 2026
Sources: Landbay, Mortgage Solutions
Related reading: HMO licence applications rise 40% as landlords pivot to shared housing
