Multi Let Mortgages
A multi let mortgage is for a property that is being rented out per room rather than on a single let basis. It’s most common for group of students or friends who want to share a house. It is a House of Multiple Occupation (HMO) although for individuals the products tend to be the same as the traditional BTL lenders.
Normally up to 4-5 tenants with the majority of the lenders wanting a joint AST and no locks on doors. The amount of mortgage provided is based on the rent to a family although a small number will look at the rent per room.
POINTS TO CONSIDER WHEN COMPARING MULTI LET BUY TO LET MORTGAGES
- Single AST or Joint;
- Limits on number of tenants;
- Locks on doors not allowed by some lenders;
- Does lender base amount on single rent or shared;
- Type of tenants;
- Does the property need an HMO license;
- Number of properties owned;
- Interest only loans- how will it be repaid on expiry;
- Available on an interest only, full repayment or part interest and part repayment basis;
- Loan terms vary from 3-35 years;
- Available to individuals and the specialist lenders will also do limited companies;
- Minimum property valuation £75,000;
- LTV up to 85%, but typically 75%.