MUFB Mortgages
Mortgages for multi-unit properties come with specific requirements, making it essential to work with a mortgage broker like us who understands the MUFB market and knows how to match you with the right lender.
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Simmonds Mortgage Services, MUFB mortgage brokers
Investing in multi-unit freehold blocks is a smart move for investors looking to expand their property portfolio and make multiple rental income streams. This could be via a Limited Company or in or in personal name. They don’t require the same strict licencing as HMO mortgages and can be easier to manage. But you should seek the support of an experienced MUFB mortgage broker before diving in.
What is a multi-unit freehold block (MUFB)?
An MUFB property is a freehold building that is a property split up into multiple self-contained units. This includes:
Block of individual flats
Houses converted into flats
Row of terraced houses under a single freehold title
The individual units within an MUFB property come with their own separate entrances, be self contained, bathrooms, kitchens, living spaces, and bedrooms. However, they may share some common spaces, such as hallways, storage areas, bin rooms, and even gyms.
How do MUFB mortgages work?
An MUFB mortgage allows you to purchase a block of multiple flats as one single investment. It works by letting you take out a single mortgage to cover the entire building, rather than individual mortgages for each individual unit.
Not only does this enable you to capitalise on rental income from multiple units, multiple occupation and different tenants, but it also simplifies the mortgage process as its one mortgage. It’s important to consider that MUFB mortgage rates vary from person to person. The criteria may be more challenging than other buy-to-let mortgages, and it all depends on your investment experience and income levels.
Simmonds Mortgage Services compares mortgage lenders, rates, and terms to find you the right deal at the best value. We’ll get to know your purchase plans and look for options that suit your investment strategy, whether through interest-only mortgages to keep monthly payments low or fixed-rate deals to keep the interest rate paid the same throughout the loan.
What is the application process for an MUFB mortgage?
The application process for an MUFB mortgage is more complex than a standard mortgage due to the responsibility that comes with owning multiple units under one freehold title. But don’t let the application process stop you from pursuing your MUFB investment.
We handle the details of your mortgage application, making it straightforward and stress-free.
Who is an eligible candidate?
MUFB mortgage lenders will consider a wide range of applicants, including property investors, experienced landlords, limited companies, and limited liability partnerships. Some lenders may even consider first-time landlords, but you’ll have to show you have a healthy bank account first.
Lenders will also consider your age, credit history, financial commitments, and the property’s location.
1) Assessing your eligibility
Some lenders may view MUFB properties as risky investments because they involve managing multiple tenants and properties at the same time. They tend to prefer borrowers who are already experienced investors.
We’ll assess your credit history and property experience to give you an idea of your potential affordability before going ahead with a full application.
2) Finding a specialist lender
We have whole-market access, and while not all lenders specialise in MUFB mortgages, we know the ones that do. We’ll compare interest rates, loan amounts, fees, and terms to find you lenders with the best deals available.
3) Gathering your documents
We’ll give you a list of the documentation needed for the mortgage application. It’s best to get this together sooner rather than later to avoid unnecessary back and forth. The lending criteria may vary, but initially, you’ll need:
Proof of identity
Proof of income
Property details
Business plan or property portfolio (if requested)
4) Submitting a full application
We’ll complete the mortgage application on your behalf and submit it to the lender. We may ask you for additional details, so be prepared.
5) Lender decision and approval
Once the application is submitted, the lender will carry out a survey to assess the property’s suitability. If they are happy with the property and your financial assessment, they will issue a formal mortgage offer.
Ready to invest in an MUFB? Get in touch with Simmonds Mortgage Services
A multi-unit freehold block mortgage is a specialist financial product. As a property investor, it is always best to seek support from an experienced MUFB mortgage adviser. From start to finish, Simmonds Mortgage Services will find you the most suitable mortgage for your MUFB investment.
Start your journey with a trusted mortgage broker today.
Frequently asked questions about multi-unit freehold block mortgages
Do you need a license for MUFB properties?
Unlike HMO property, you don't need a licence to set up a multi-unit freehold block. This means fewer set-up fees for you to worry about. If the property is a hybrid which also contains a HMO then a licence may be required.
What is the maximum number of units in a MUFB?
A multi-unit freehold block (MUFB) is a property with two or more flats under one single freehold title, whether that's a converted house, row of houses, or block of flats. There is not necessarily a maximum number of units in an MUFB property, however, lenders may put a limit on the number of units they will consider for a mortgage. This is usually around the 20 unit mark.
Are there high-street MUFB mortgage lenders?
High-street mortgage lenders don't tend to offer MUFB mortgages. Instead, we'll source a specialist lender who can provide the right funding for this type of investment. Lucky for you, we've helped many property investors secure great MUFB deals without the need for a high-street bank.
Looking for a different mortgage product? See our mortgage service for Houses in Multiple Occupation
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Get in touch with us by calling 0118 469 3037 for a free chat about your specific circumstances. Let us help you secure your dream home.