hmo mortgage 85 ltv
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.
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.
Students: They can have their rent guaranteed by their parents, and often have a limit to their study time.
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.
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).
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.
HMOs may not be valued equally by lenders. Some will base their valuation on rental income, while others will base it on the HMO being a regular home. This can reduce the amount you are able to borrow, which defeats why an HMO mortgage is needed.
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.