As you don't know the criteria of every lender, it is not a wise idea to approach lenders in your quest for a mortgage. A specialist can ensure that the right lenders are approached and that you receive the best rates. For assistance with mortgage queries, contact us immediately or make an inquiry at any moment.
Finding the right HMO loan for you can be complicated. Lender criteria vary and each one will have different requirements. Our expert buy to let team is available to assist you in finding the right HMO mortgage.
Which tenants can my HMO target? - Low-cost housing / affordable housing / Housing benefit tenants: Some landlords opt to rent out their entire property to local authorities in order to receive a low-cost, steady income. - Working professionals: Increasing numbers of people rent into their 30s and 40s. These tenants are looking for properties that have higher standards, such as more bathrooms and more stability, in order to live a less stressful life. -
HMOs will require a license from your local council for five years. It's important that you inquire about the policy in your area with the relevant local authority. The general rule applies to properties with at least five occupants. However, licences may be required for smaller properties with fewer tenants. You will be in the best position to apply for it, as the requirements vary depending on where you are located.
HMOs are very popular with individual tenants. They're often affordable and come fully furnished. This is especially true of students, contractors, and overseas workers who are on work visas. HMOs are desirable because of their ease-of-use and low cost.
HMO (Houses in Multiple Occupation) may be more profitable that regular buy to rent investments. HMO mortgages are also becoming more popular with landlords. However, is it really necessary to have an HMO mortgage? Can a traditional mortgage be sufficient?
HMO lenders are going to be looking at the knock-on effect of higher risks on your ability and ability to pay the mortgage.