HMO mortgage
Helping you finance your House in Multiple Occupation
Mortgage for HMO
If you want to purchase and rent a property to three or more people from different households, you will need an HMO mortgage. But getting one can prove tricky!
Due to the increased risks and challenges associated with owning a house in multiple occupation, many mortgage lenders will only lend to experienced landlords. It is still possible to get one as a first-time landlord, but you will probably need to pay a higher interest rate.
In addition to meeting the standard buy to let mortgage criteria, most lenders will also need a few details about the property you are looking to purchase before they decide whether they will lend to you or not. This includes:
– Where it is located
– The number of lettable rooms
– If it requires a license from the local council
– If it will be purchased through a limited company
– The type of HMO it will be.
As each lender also has their own criteria, the mortgage application process can be complicated. Because of this, HMO mortgages are generally only available through a specialist buy to let mortgage broker like Fosters Financial. They know what each lender requires and can help you get the right mortgage at the best possible rate available to you.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
-
What is an HMO mortgage?
An HMO mortgage is a type of buy to let mortgage used by landlords to purchase and rent a property to multiple people from different households.
-
Are HMO mortgages more expensive?
As fewer lenders offer HMO mortgages, mortgage rates and fees are generally higher than they are for standard buy to let mortgages. But these can be easily offset with the significant rental yields that can be achieved from this type of property.
-
What is the difference between buy to let and HMO?
An HMO is a property occupied by several tenants who each rent a bedroom and share communal facilities including, a kitchen, living room, and bathroom. Every person has their own tenancy agreement and is responsible for paying their share of the rent.
The Financial Conduct Authority does not regulate most buy to let mortgages.