How to Hub
What exactly is an MUB? – Gemma Lang, Regional Account Manager explains.
As you know, Foundation Home Loans lend on Multi-Unit Blocks, but what constitutes as a Multi-Unit Block? As part of our series on Specialist Property Buy to Let Mortgages, Gemma Lang explains:
A MUB (Multi-Unit Block) is a freehold property that has been split into self-contained flats that are not subject to individual leases. This could include a block of flats or a house that has been converted into flats.
A Multi-Unit Block is not where there are multiple houses or bungalows held under one freehold title. In this instance, we would require the titles to be split on or before completion of our mortgage to enable us to mortgage each individual property. Please do check if there are any shared access points or shared utilities between the properties, or if your client will be residing in any of them prior to discussing these cases with your Regional Account Manager or the Broker Desk, as these are common reasons why these types of cases can sometimes be declined by us during the application process.
A Multi-Unit Block is not where rooms are let out individually to tenants who share basic amenities, such as kitchens and bathrooms. This would be keyed as an HMO (House of Multiple Occupancy). However, if your customer owns a Multi-Unit Block where one/some of the units are not self-contained, this would be classed as a Hybrid HMO MUB and you would need to select the “Large HMO and MUB product” when keying your application. We recommend speaking to your Regional Account Manager or the Broker Desk before keying these applications, as they may require an Underwriter referral prior to DIP submission.
A Multi-Unit Block is also not a block of flats with separate leasehold titles. Instead, where a client owns a block of flats and they all have separate leasehold titles AND your customer/or connected party to your customer owns the freehold title, you would key these individual flats as leasehold flats. Please see our criteria guide for details of our charge over freehold and leasehold in this case.
Please ensure when you key these types of cases to us correctly, as the wrong occupancy status or product selected will cause your DIP to decline.
- If it’s a leasehold flat, please key the occupancy as Single Household.
- If it’s an HMO please key the occupancy as House in Multiple Occupancy.
- If it’s an MUB please key the occupancy as Multi-Unit Block.
If in doubt, please do call your Regional Account Manager or the Broker Desk.
FOR INTERMEDIARIES ONLY
