Multi unit

We Are Multi Unit Freehold Block Mortgage Experts

Purchasing a multi unit freehold block (MUFB) is an effective way for landlords to scale their property portfolios. At Reliance Mortgages, our specialist brokers have deep expertise in arranging MUFB mortgages, ensuring you get the right deal and the best rates for your investment goals.

What Is a Multi Unit Freehold Block Mortgage?

A MUFB mortgage is a type of buy-to-let mortgage tailored for properties that consist of multiple self-contained units under one freehold title. Instead of separate loans for each unit, this mortgage secures the entire block under one agreement, simplifying financing and management.

Typical multi unit property types include:

• A large house converted into individual flats
• A purpose-built block of apartments
• Adjoining houses combined under a single freehold title

These setups allow landlords to let out each unit individually while managing one cohesive property asset.

Why Invest in a Multi Unit Freehold Block?

Compared to single-unit buy-to-let investments, MUFBs offer several unique advantages:

• Higher rental yields – More units mean more rental income
• Diversified income – Reduced risk with multiple tenants
• Lower void risk – A vacant unit won’t affect your full income
• Economies of scale – Shared costs for maintenance and management
• Capital growth potential – Appreciation of the entire block
• Exit from development finance – Retain developed sites as long-term investments

MUFBs also provide flexibility in attracting varied tenant types, including families, students, or working professionals — allowing for a broad, resilient income stream.

MUFBs vs HMOs – What’s the Difference?

Though both involve multiple rental units, MUFBs and HMOs are fundamentally different in layout and use:

• MUFBs: Each unit is self-contained with its own kitchen, bathroom, and entrance. Tenants have their own tenancy agreements.
• HMOs: Tenants share communal areas such as kitchens or bathrooms, and often have individual agreements for one room.

In essence, MUFBs offer greater privacy and separation for tenants, while HMOs rely on shared living arrangements.

What Properties Qualify for MUFB Mortgages?

To qualify for a MUFB mortgage, a property must have multiple self-contained units within one freehold title. Eligible types include:

• Converted houses split into flats
• Purpose-built blocks of apartments
• Groups of houses under a single freehold
• Mixed-use buildings (e.g., flats above a commercial unit)
• Former office buildings converted into apartments

Depending on the lender, qualifying blocks may range from 2 to over 50 units.

How to Finance a Multi Unit Freehold Block

There are a few financing options available when purchasing a MUFB:

• Cash Purchase – For investors with significant available funds
• Individual Unit Mortgages – Requires each unit to have its own lease and mortgage
• MUFB Mortgage – The most efficient option, with one loan covering the entire block

MUFB mortgages offer streamlined financing and easier long-term management for landlords.

Criteria for MUFB Mortgages

While each lender has unique criteria, common requirements include:

• Minimum of 2 self-contained residential units
• Minimum 25% deposit (maximum 75% LTV)
• Applicants aged 21 or older
• Rental income stress-tested at 145% of monthly payments
• Experience managing rental properties (typically required)
• Limited company SPVs accepted

Each flat or house in the block must have its own tenancy agreement, address, and council tax registration. Some lenders may consider first-time landlords for smaller MUFBs (2–5 units).

Finding the Best MUFB Mortgage Deals

As whole-of-market brokers, Reliance Mortgages compares offerings from a wide range of specialist lenders. We help you secure the most competitive rates and optimal borrowing terms tailored to your needs.

Our experts will provide a no-obligation quote outlining your borrowing potential. From there, we’ll manage your full application process — including document submissions — to ensure a fast and smooth transaction.

First Time Investing in a MUFB?

Whether you’re expanding your portfolio or purchasing your first MUFB, our team is here to guide you every step of the way. We simplify the process and provide expert advice tailored to your investment goals and property type.

Tips for a Successful MUFB Mortgage Application

To improve your chances of approval, keep the following in mind:

• Demonstrate prior property management experience
• Show consistent income and rental track record
• Maintain a strong credit history
• Prepare documentation and property details in advance
• Have deposit sources ready to be verified

Working with an experienced MUFB mortgage broker like Reliance Mortgages means fewer delays, fewer headaches, and a better mortgage outcome.

Book Your Free Consultation Today