HMOs are houses of multiple occupancies, unlike regular rental properties, which contain one family and several unrelated people living in HMOs, each paying their rent.
For landlords, these are excellent earners as the per-person, per-room rate can often far exceed the amount from renting the entire property to one person/family. Students will typically live in shared accommodation, but in many parts of the country, there is good money to be made from professional house shares. This is especially true in high-priced areas like London and the south-east.
Multi Let Finance products
The process of obtaining an HMO mortgage is essentially the same as that with buy-to-let mortgages. However, the number of lenders willing to finance a multiple-occupancy purchase will be significantly reduced. Some buy-to-let lenders permit landlords to rent rooms to up to four people without enforcing additional requirements. Still, others will be far less lenient, and knowing who to apply to is essential before starting the house-buying process.
In some cases, you will need to obtain a multi-let license from your local authority, and securing finance, in this case, is even trickier. Thankfully, at Ravenwood Services, we have professional advisors who can talk you through the do’s and do n’ts of multi-unit mortgages and guide you on your next steps.
Mortgage criteria/terms
We need to know many details before deciding which HMO lender to approach for an application. Did the property have a license with the existing owner? Are you converting a family home to a multi-let? What is the exact number of Bathrooms and Kitchens? The more information we have, the better we can get you.
Hmo Mortgage Lenders
We have relationships with all the specialist HMO lenders. Moreover, more conventional lenders can be persuaded to “let through” some types of homes of multiple occupancy properties on normal buy-to-let terms.
If you have any queries, please call our London office phone number. Our specialist brokers would love to help.
If you’re looking for a remortgage with lousy credit, as long as you have good proof of your income, it should go through quite easily as long as the loan-to-value isn’t too high.
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How much money can I borrow?
You can borrow 70% of your home’s valuation. For example, if your home is worth £290000, you can borrow £203000.
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