HMO mortgages are only available to experienced landlords. This means that lenders may not accept applications from those who have been landlords for more than two years and/or have experience with HMO letting. There may be additional requirements from lenders. Lenders may have additional requirements if you are a first landlord.
Lenders may accept evidence to support an HMO licence application in lieu of the actual license. However, this is more time-consuming and not always feasible. On the condition that you have the license, you might be deemed 'fit to run an HMO'. But, if possible, the underwriting process will be facilitated if the license is readily available.
HMOs may be restricted to a specific area. HMOs target specific tenants, such students or single professionals. HMOs are typically located in urban centers or other areas that have easy access to public transport and other amenities. It would be unwise to locate an HMO somewhere in the middle if it was in a rural setting.
HMOs are often restricted to specific areas. HMOs, for example, are designed to target certain tenants such as single professionals or students. An HMO's location is often restricted to central locations, or areas with easy access to bus routes and other amenities. It would be absurd to have an HMO in a remote location in the middle or even in the middle of nowhere.
Because nobody wants to clean up the mess of another, shared areas often 'get left'. The property may need to be maintained by the landlord, who might have to clean it or hire cleaners.
Lenders will accept evidence of an HMO application as evidence, even if the actual licence is not available. This can be more time-consuming and less practical. In this case, the HMO licence may be required to determine if you are 'fit and proper' for the job. If possible, having the licence on hand will help you with the application stage.
It is not a good idea to approach lenders for the purpose of getting a mortgage. You won't be able to fully understand each lender's requirements. Specialists can help you find the right lender and get you the best rates. To get started, you can either make an inquiry or ask our experts questions about your mortgage.