Aldermore Bank has announced a series of key upgrades to its buy-to-let mortgage proposition, rolling out today across the UK, with a clear focus on supporting landlords investing in Houses in Multiple Occupation (HMOs).
In a move designed to ease affordability pressures and streamline applications, Aldermore has introduced a package of landlord-focused benefits including free valuations on smaller HMOs, more flexible conveyancing options, and reduced interest cover ratio (ICR) thresholds. These updates are live from today (24 June 2025) and apply nationwide.
The lender said the changes were aimed at growing numbers of property investors shifting towards higher-yielding HMO and multi-unit strategies. Lending has also been expanded up to £2 million at 65% loan-to-value (LTV), and £1.5 million at 75% LTV for qualifying properties.
“We believe that this enhanced BTL proposition supports an increasing number of landlords who are moving into the HMO market,” said Jon Cooper, Director of Mortgages at Aldermore. “These changes again demonstrate our ongoing commitment to accessible solutions, clear communication, and expert guidance at every stage of the application process.”
More flexible borrowing terms
Aldermore’s updated proposition delivers five tangible changes, each geared towards helping landlords navigate today’s lending environment with more confidence and clarity. The most eye-catching change is the introduction of free valuations on single HMOs up to six bedrooms – a move expected to be especially helpful to portfolio landlords seeking to reduce upfront costs.
Lower ICR thresholds have also been introduced across the board – not just for HMOs, but also for multi-unit freeholds and standard residential investment properties. For many landlords facing affordability pressures due to recent mortgage rate hikes, this reduction could prove decisive in unlocking further borrowing potential.
In addition, Aldermore has rolled out a new tailored case management service, which assigns a dedicated adviser to guide applications through every stage – a hands-on approach that brokers and landlords alike are likely to welcome.
Legal flexibility and bigger loan sizes
One of the quieter yet impactful improvements lies in Aldermore’s legal process. The lender is now offering landlords a choice between managed and open panel conveyancing, giving them the freedom to use their own legal team where preferred – something many mainstream lenders do not allow. On remortgages, Aldermore will also provide assisted legal fees, helping investors manage costs.
Crucially for landlords operating in high-value areas like London or the South East, Aldermore is now offering loans up to £2 million at 65% LTV, and £1.5 million at 75% LTV for both HMOs and multi-unit blocks – a threshold that places the lender firmly in the upper tier of the specialist market.
“We’re working more closely with landlords and brokers than ever,” one Aldermore relationship manager told us off the record. “We know the HMO market is growing fast, and landlords need a lender who can think beyond the tick-boxes.”
HMO landlords gain momentum
These changes come at a time when landlords are under mounting pressure from both interest rates and shifting regulation. Yet HMOs have remained a resilient asset class, with rental yields consistently outperforming single lets across most UK regions.
According to the latest data from BVA BDRC, 38% of portfolio landlords now own at least one HMO, with strong interest in converting larger family homes or commercial-to-resi opportunities. In cities like Manchester, Nottingham, and Birmingham, demand for shared accommodation is soaring, driven by students and young professionals priced out of single lets.
With Aldermore stepping up its support for this growing cohort, landlords have a clearer path to expand – even as the wider mortgage market remains tight.
