Multi-Unit Freehold Block mortgages

Please note: Only Limited Company Multi-Unit mortgages are available for Intermediary distribution. Individual Multi-Unit products can be accessed via our packaging partner, Manor Mortgages.

Our new Multi-Unit Freehold (MUFB) mortgages are available for independent landlords and Limited Companies. Our criteria defines a Multi-Unit Freehold or Multi-Unit Freehold Block (MUFB) as up to three self-contained units listed under one freehold title, not multiple leaseholds. Examples include a house that has been converted into flats, or a row of terraced houses. Each property on the title must be a self-contained unit and can be rented out to different tenants.

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Variable mortgages

Our Standard Variable Rate (SVR) is currently 8.19% (variable). Please note from 1st January 2025 the SVR will be 7.99% (variable). There may be a limit on how low your interest rate can fall. This is called an ‘interest rate floor’. The interest rate floor applicable to your loan will be specified in your loan documentation.

Product name

Ltd Co Multi-Unit Freehold Block (MUFB) variable for 2 years

Product code: BDD080

Initial rate

6.19%

Discount from SVR

Overall cost for comparison

8.3% APRC

Max LTV %

70%

Product fee

£1499

Fixed rate mortgages

The mortgages listed below move on to our Standard Variable Rate (SVR), 8.19% (variable) after the initial rate period. Please note from 1st January 2025 the SVR will be 7.99% (variable).

Product name

Ltd Co Multi-Unit Freehold Block (MUFB) fixed for 5 years

Product code: BDF154

Initial rate

5.89%

Overall cost for comparison

7.8% APRC

Max LTV %

70%

Product fee

£1499

Product name

Ltd Co Multi-Unit Freehold Block (MUFB) fixed for 2 years

Product code: BDF153

Initial rate

6.25%

Overall cost for comparison

8.3% APRC

Max LTV %

70%

Product fee

£1499

Proc Fee
We will pay a gross procuration fee of 0.4% on all new introduced business and 0.3% on all product transfers. The fee is usually paid within five working days following completion. Procuration fees may vary for our recognised Clubs & Packagers.
Repayment type
Interest only and repayment options available
Key features
- Availability – MUFB Purchase & Remortgage up to 70% Loan To Value (LTV). Minimum deposit of 30% required.
- Flexibility – Overpayments up to 20% of the capital balance as at 1st January allowed in each calendar year without penalty.
- Portable.
Early repayment
For full repayment of a 5 year fixed product, you will pay 3% of the outstanding balance in years 1, 2, 3 & 4; 2% in year 5, plus a Closing Administration Fee (currently £100).
For overpayments of a 5 year fixed product, you will pay 3% on any amount exceeding your 20% limit in year 1, 2, 3 & 4, 2% in year 5.
For full repayment of a 2 year fixed or discounted product, you will pay 3% of the outstanding balance in the first year and 2% in the second year, plus a Closing Administration Fee (currently £100).
For overpayments of a 2 year fixed or discounted product, you will pay 3% on any amount exceeding your 20% limit in the first year and 2% in the second year.
Product fees
- MUFB Valuation fee.
- Product fee £999 for individual applications and £1,499 for limited company applications.

Lending criteria

Lending Criteria and Information

Loan:	Size: Minimum £50,000, maximum £1,500,000 up to 70%. Term: Minimum 5 years, Maximum 40 years. Repayment Type: Capital Repayment, Interest Only.
Property:	Minimum Value: £100,000. Must be standard construction. Must be in England, Wales or Scotland.Mainland Scotland and The Shetlands, The Orkneys, Arran, Bute, Skye, Harris & Lewis, Mull and Islay. Up to a maximum of 3 units in the block, with each split into individual units with own address and council tax liability.
All applicants:	Must be UK residents. Minimum age 21. No maximum age, subject to income in retirement.
Income:	Household income must be at least £20,000.
Rental:	The calculation is based on the actual or expected rental. Rent must cover 150% of the ‘stressed mortgage payments’ for both basic and higher rate tax payers. The stressed mortgage payment is based on the product rate +2% or 5.5% whichever is higher.
Underwriting:	We take a flexible approach to underwriting and will consider each case on its merits. We do not credit score. The actual rate and APRC for your case will depend on your circumstances and our assessment of the risk.