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HMOs have complex requirements, so most buy to rent lenders will only consider experienced landlords. The criteria for lenders will vary, but usually one to two years of landlord experience is sufficient. Some lenders will not accept landlords who are new to the area. However, this is usually accompanied by a requirement that the property be managed and managed by an agent. If you're unsure if your property qualifies for an HMO mortgage, the buy to let team can help.

HMO licences can be obtained from local councils. They are valid for five year if approved. HMO licences can be obtained for each individual property and not just for the landlord. If an HMO requires a licence, for example, a landlord may need to have a licence for each of his three properties.

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Why invest in HMOs HMOs (Houses in Multiple Occupation) are often more profitable than standard rental properties. But, what exactly is this and how easy can you finance them. A House of Multiple Occupation (HMO), is a property that has three or more occupants sharing a bathroom or kitchen facility. They are also unrelated. Properties require an HMO licence from the local authority in order to meet regulatory standards. This is often called a house-share. It's a popular option for young professionals and students, as rent is generally more affordable than a small studio or flat. A HMO can also be a benefit to landlords and property investors, since multiple bedsits often yield higher rental returns than a stand-alone purchase to let.

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HMO lenders will consider the impact of higher risk on your ability to repay the mortgage. This is reflected in current interest rates at 3%, compared to 1.7-1.8% for a single-tenancy BTL.

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An HMO will not be valued by every lender based on rental income. Instead, the lender will consider the HMO to be a standard home. This could limit the amount that you can borrow, which is counterproductive to the purpose of an HMO mortgage.

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HMOs without licenses are not eligible for a mortgage. Lenders might instead offer you a buy to rent mortgage.

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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.