HMO Finance Rates The lender's willingness to consider your individual circumstances (e.g., your experience and the location) will affect the rate of interest that you are charged.
Lenders are not recommended for anyone looking to secure a mortgage. An expert can ensure you get the right lender for you and the best rates possible. You can contact us at any time to inquire or just ask our experts about your mortgage questions.
HMOs require a five-year licence from the local municipality where the property is found. It is vital to speak with the relevant authority regarding the policy in your particular area. There are some exceptions to the rule. Licences can be required for smaller properties or properties with fewer occupants. The area will affect the application process so make sure you have all the necessary information.
While every case is unique, HMO mortgage applications usually take about the same time as other buy to rent mortgage applications. Pre-pandemic we would expect a mortgage offer to take between three and four weeks, followed by four to six more weeks to complete.
HMO mortgages may only be available to experienced landlords. Lenders will not accept applications from anyone who has been a landlord for two years or more and/or has experience in HMO leasing. Additional requirements may be required by lenders. A HMO mortgage will not be approved for a first-time landlord. Instead, you'll need to rent a property to one household.
HMOs often have higher running costs and are more difficult to manage. HMOs will require locks for each room, and there are more detailed safety and health guidelines than regular buy to rent. The setup costs of an HMO are more costly than regular buy to rent.
My HMO can target which type of tenants? - Low-cost/affordable housing / housing benefits tenants: Some landlords choose to sell their entire properties to the local authorities to be used as low-cost housing. This allows them to earn a steady income while also getting a discount. - Working professionals are increasingly renting their homes into their 30s and 40s. They seek out higher-spec properties with more bathrooms, but they also want stable tenants who live a more peaceful life. -