hmo mortgage 80 ltv
These complex properties are not suitable for lenders who are less risk-averse. The ones that are will be able to offer financing will most likely have their own criteria.
HMOs are more difficult to manage than traditional buy-to-let models. Tenants can sometimes get irritated when they are sharing facilities within an HMO. You may also be a landlord and act as a mediator between tenants who do not see eye-to-eye.
Only a few UK specialists are available to lend on large HMOs and understand the potential for high yields given the higher risk of multiple tenants. They have their own definitions and criteria for HMOs and the types of properties they will lend against. This is why a broker is needed to help you put together your application and match you with the right broker. CMB is an experienced broker that can package your application to match the lender's terms. This significantly speeds up the process.
These complex properties are not suitable for lenders who are less risk-averse. The ones that are will be able to offer financing will most likely have their own criteria.
Because this is a more complex type of property, lenders will not offer loans to such cases. However, those who are willing to offer them will likely have their own criteria.
It can be hard to find the right HMO mortgage for you. Every lender has their own requirements. Our team of experienced property finance advisors will be happy to assist you with finding the best HMO mortgage for your needs.
HMOs are a popular choice for individual tenants because they are usually affordable and fully furnished with bills. This is particularly true for overseas workers, students and contractors who are working visas. HMOs offer the convenience of moving in quickly and at little expense.
HMO properties might be offered for sale with irresistible "100%+ gross returns". It's hard to imagine anyone not wanting a piece of this. Gross yields in HMOs are not good. There are significant costs involved, such as council tax, insurance and utility bills. Management costs include rent arrears, voids, and management costs. You might see a ROI of 8-10% for an HMO, as opposed to 4-5% for a single-tenancy Buy-to-Let.