Landbay has cut rates on its large houses in multiple occupation and multi-unit freehold block range by up to 0.2%.

The buy-to-let lender’s criteria for large HMOs is seven to 12 bedrooms, and large MUFBs is seven to 12 units.

Its new HMO rates are:

A large HMO two-year fixed at 70% loan to value is 3.69%, down from 3.85%.

A large HMO two-year fixed at 75% loan to value is 3.79%, down from 3.99%.

A large HMO five-year fixed at 70% loan to value is 3.89%, down from 4.09%.

And a large HMO five-year fixed at 75% loan to value is 3.99%, down from 4.19%.

Its new MUFB rates are:

A large MUFB two-year fixed at 70% loan to value is 3.69%, down from 3.85%.

A large MUFB two-year fixed at 75% loan to value is 3.79%, down from 3.99%.

A large MUFB five-year fixed at 70% loan to value is 3.89%, down from 4.09%.

And a large MUFB five-year fixed at 75% loan to value is 3.99%, down from 4.19%.

Landbay managing director, intermediaries Paul Brett says: “Demand for HMO and MUFB finance has been picking up over the past couple of years as experienced landlords build up and diversify their portfolios.

“These types of property are proving more attractive to landlords as they generate a higher yield than a single dwelling. This is being fuelled by high demand for shared housing and rented property.”

Last week, Landbay launched its first green mortgage range, which carry a 0.1% or 0.05% reduction against its comparable non-green loans, depending on a property’s energy rating.

While earlier this month, the firm introduced two new products for landlords with three properties or less, and cut rates across other parts of its range.