HMO landlords are likely to pay utility bills for their property, unless it was converted into flats or had separate title deeds through the land registry.
It is crucial that you get the best possible deal on your financing to ensure a long-term return. Get in touch with our HMO mortgage finance specialists.
A traditional buy-to-let property could accommodate one person, or a large family. The household would have to pay one rental payment on a weekly and monthly basis. The utility bills are also paid by the household. These can be called'singlelets'.
HMOs require a five-year licence from the local municipality where the property is found. It is vital to speak with the relevant authority regarding the policy in your particular area. There are some exceptions to the rule. Licences can be required for smaller properties or properties with fewer occupants. The area will affect the application process so make sure you have all the necessary information.
Finding the right HMO finance can be challenging. There are many factors to take into consideration, not least because each lender has its own criteria. Our buy to let experts will help you to find the right HMO mortgage.
What is an HMO-mortgage? HMO mortgages can be used by landlords to rent their property to more tenants than one household. These specialist buy to let mortgages offer some key distinctions.
HMO mortgages can be offered by 27 lenders at the time this article was written. 23 of these loans are available to Limited Companies. HMO mortgage rates are higher than those for buy to let because this is a more specific property type. For landlords, rates have become more competitive due to increased competition in this industry. Rates start from 1.64% (individuals) and go up to 2.69% (limited companies).