hmo bridging finance
A House in Multiple Occupation is a property that's let to more than three tenants. The tenants share some rooms but have their own bedrooms. The kitchen, bathroom, and lounge. Flat share or house share is an HMO.
HMOs will not all generate triple the rental income of a regular buy to let. It is also important to remember that utilities bills are typically paid out by landlords. The above example shows that even with a PS2k-3k monthly utility bill, rental profits are still substantial.
A HMO can make you a higher profit than renting to a family. You can charge for each room separately and charge more overall. You will require a specialist mortgage to accomplish this.
A House in Multiple Occupation is a property that's let to more than three tenants. The tenants share some rooms but have their own bedrooms. The kitchen, bathroom, and lounge. Flat share or house share is an HMO.
Number crunching is essential to make an HMO financially viable. Our HMO mortgage advisors can help maximize your rental income by analyzing your proposal. Secure a great deal to make your HMO profitable. Most lenders who offer preferential rates often work with mortgage brokers.
What is an HMO? A house in multiple occupancy (HMO) refers to a property that has shared facilities like bathrooms and kitchens. It is usually rented out to three or four people, but not as a "household". A licence is not required to operate a standard HMO that has four or fewer tenants. However, HMOs have different requirements than buy-to-let mortgages that are used for whole-property rentals.
HMO mortgage lenders are likely to take your rental income into account. This can help to increase your mortgage limit. HMO mortgages could be offered at tracker or variable rates. LTV rates generally start at 80% LTV. More attractive rates can be offered with higher deposits or lower LTV ratios.
Location is not a limitation for traditional rental properties. We work with letting agents across the country who have rented properties in nearly every possible location. They've all been rented, whether in the country, city or rural.