Moda mortgages – Every product to Every customer All at Once.
A new comer to the BTL lending orbit is Moda mortgage. They have one of the most streamlined product ranges of all. Similar to what Hampshire Trust Bank does. There has been some product shrinkflation with some lenders in the market. However, instead of limiting the range, Moda has taken product streamlining to the next level.
There are no separate products for property type, Client type or transaction type. Same deal is given to Single Self Contained Unit, House of Multiple Occupation (up to 6 beds) and a Multi Unit Freehold Block. No difference if you are single owner or a portfolio landlord with 20 properties. Which means same ICR and default rate calculations are applied to all.
This makes Moda Mortgage very competitive on lending limits for HMOs (see below), which are the flavour of the month with many property investors currently. They are also one of only 4 lenders for First Time Buyer, non-owner occupier HMOs. This is an area of investment not paid attention to by many lenders for obvious reasons, as managing tenancies in HMOs can be tortuous for inexperienced landlords . However, social media is full of groups transacting in HMOs in the UK. Another addition to the speciality property market will be welcomed by many landlords and property investors.
Table data based on: Buy to Let purchase / Property: £550,000 / Rent: £1900 / LTV: 75% / Term: 25y / Limited Company Purchase / Property type: HMO up to 6 beds.