HMO landlords pay utility bills, except if the property has been converted into flats and the title deeds were sent to the land registry.
What is an HMO mortgage, and how does it work? HMO mortgages are a mortgage that landlords can use to rent their property to more than one tenant. There are some key differences between specialist buy-to�let mortgages.
HMOs are more risky than regular BTLs. HMO tenants tend to move more quickly because they are not related, which increases the chance of voids and unpaid rents. They may be less committed to the property, which can lead them to take less responsibility for its upkeep and care. It can be harder to spot any damage or problems with a tenant.
HMO mortgages are offered by 27 lenders to individuals and 23 to limited companies at the time of writing. HMO mortgage rates are more expensive than buy-to-let mortgages because they are a specialty property type. The increase in competition has made rates more affordable for landlords. They start at 1.64% for individuals and 2.69% for limited companies.
While every case is unique, HMO mortgage applications usually take about the same time as other buy to rent mortgage applications. Pre-pandemic we would expect a mortgage offer to take between three and four weeks, followed by four to six more weeks to complete.
HMO Finance rates? The lender and their willingness to consider your unique circumstances will dictate the interest rate that you will be charged.
What returns can an HMO give me?