An HMO is any property let to 3 or more tenants that form 2 or more households. These products are aimed at professional landlords and landlords who are renting out each room on a separate tenancy agreement. If you are looking for a mortgage on a multi-let basis where you have sharers on a single joint tenancy then the information will be found here.
We have access to every HMO lender and have a wide range of lenders for your next purchase or remortgage. Every lender has different rules on the type and size of HMO and we deal with them all.
We are advisers to a number of lenders and are regular contributors to the media in the HMO sector.
POINTS TO CONSIDER WHEN COMPARING HMO MORTGAGES
- Income – lenders range from no minimum to £25,000;
- The more landlord experience you have the more lenders are available;
- Fewer products for property owners who are first time landlords;
- Type of tenants – restrictions on DSS, Asylum Seekers, Local authority etc. but we still have lenders that do them;
- Number of beds;
- Fewer lenders if no communal space or kitchen equipment in rooms;
- Does it need a license;
- Does it have the correct planning;
- Bricks and mortar valuation or against the rent;
- Interest-only loans – how will it be repaid;
- Reverting interest rate – what you will pay after the initial period expires.
- HMO mortgages are available on interest only, full repayment or part interest/part repayment basis;
- Loan terms vary from 3-40 years;
- Available to individuals, partnerships, LLPs and limited companies;
- Minimum property valuation £75,000;
- Most lenders will work off bricks and mortar valuation;
- Some will work off the rental value;
- LTV typically 75%.