hmo mortgage comparison
HMO lenders will take into account the potential knock-on effects of higher mortgage risks on your ability pay the mortgage. The interest rates are currently at about 3%, compared with 1.7-1.8% for single-tenancy BTL.
HMO lenders may be concerned about the knock-on effects on your ability of to pay the mortgage. These higher risks are reflected in the current interest rates. They currently hover around 3%.
HMO Valuations. Lender methods may differ in this area. Some lenders use the traditional surveyor inspection in combination with comparing it to other properties in the region. If there arenŐt any HMOs, the valuation will reflect the propertyŐs value as if it were a single house. However, this method doesnŐt account for HMOs that have multiple rental incomes. Therefore, it limits your borrowing options.
HMO lenders will take into account the potential knock-on effects of higher mortgage risks on your ability pay the mortgage. The interest rates are currently at about 3%, compared with 1.7-1.8% for single-tenancy BTL.
Houses in Multiple Occupation can yield more than regular buy to lets investments. HMO mortgages have also been more common among landlords. But, does it really make sense to apply for an HMO loan? Can a traditional purchase-to-let mortgage suffice?
HMOs can be restricted to certain areas. HMOs can be targeted at specific tenants such students and single professionals. HMOs are often located in central areas or near major bus routes and amenities. It would be pointless to have an HMO located in a rural area in the middle-of-nowhere.
Lenders can accept evidence of a HMO license application in lieu the actual licence. This can take more time and it is not always practical. Accordingly, you could be deemed "fit and proper" to run an HMO under the condition of having the license. However, it is best to have your licence available so that the underwriting process can be expedited at the application stage.
What tenants can I target through my HMO? - Low-cost / affordable Housing / Housing Benefit Tenants: Some landlords let their entire properties to local authorities to use as low cost housing. In return, they get an income stream and a discount. - Professionals: A growing number of working professionals rent their properties into their late 20s to 30s. They prefer higher-spec properties (often having more bathrooms), but are more stable and live a quieter life. -