Pepper Money has launched a house in multiple occupation loan for limited companies and individual landlords aimed at who want to expand their portfolios.  

The product is available on portfolios of up to 10 properties, with rates starting at 5.19%, and a maximum loan-to-value of 75%, on properties with an energy performance Certificate rating of A to C. 

The offer is open to limited companies and landlords, with at least a year of homeownership experience, to mortgage or remortgage on new and existing houses in multiple occupation of up to six bedrooms, provided the property is appropriately licensed at the time of completion. 

Terms are available at up to 35 years, lending is available to age 85. 

The specialist lender says its affordability assessments will be based on rental income receivable from the property, without the need to provide personal or business bank statements as proof of income.  

Multiple sources of funds are also accepted to pay deposits, including gifts, director loans, and existing equity.  

Credit scores are not used as part of the assessment of applications, the lender adds. 

Pepper Money sales director Paul Adams says: “As a specialist lender providing specialised products, we know that landlords are operating within an increasingly complex regulatory environment and navigating affordability challenges which are affecting their behaviour.  

“While traditional credit checks are valuable, our approach offers a broader view of financial health, promoting responsible lending and renting practices.  

“Houses in multiple occupation play a vital role in the UK’s private rental market, offering an affordable and accessible option in the face of rising rental demand and a growing gap between the amount of supply available.”