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 a group of students or friends who want to share a house. It is a House of Multiple Occupation (HMO) although some lenders class it as traditional BTL mortgage and the rates are lower.
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
- Tenants on one AST;
- Limits on the number of tenants;
- Locks on doors not allowed by some lenders;
- The property must be capable of being sold as a family home;
- Does lender look at single let rent or shared;
- Does it need an HMO license;
- Has it the correct planning.
- Available on an interest-only, full repayment or part interest and part repayment basis;
- Loan terms vary from 2 – 40years;
- Available to individuals and limited companies;
- Minimum property valuation £75,000;
- LTV up to 85%, but typically 75%.