MT Finance has increased the maximum loan-to-value to 80% on its buy-to-let product for houses in multiple occupation of up to six rooms.

The lender is updating the LTV on its five-year fixed Tier 1 products for small HMOs immediately.

MT Finance offers loans up to £2m, subject to LTV limits and says the latest change underlines its commitment to supporting landlords in the growing HMO sector.

Director of mortgages Marylen Edwards says: “We’re seeing continued strong demand in the HMO sector as investors seek higher yields in the current market. 

“By increasing our maximum LTV to 80% on our five-year fixed rate product, we’re providing investors with greater leverage opportunities while maintaining our commitment to responsible lending.”