hmo mortgage compare
HMOs without licenses are not eligible for a mortgage. Lenders might instead offer you a buy to rent mortgage.
What is a HMO investor? - HMOs are an increasingly appealing form of property investment for landlords with years of experience and those new to the sector. A house in multiple occupation (HMO) is a property that is rented by at least three people who are from different households. The tenants share facilities, such as kitchens and bathrooms.17 Jun 2021
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.
HMOs without licenses are not eligible for a mortgage. Lenders might instead offer you a buy to rent mortgage.
You need to get the best financing deal possible in order to achieve long-term returns. Our HMO Mortgage Finance specialists are available to assist you.
HMOs are a good investment. - You can expect to make roughly twice the rent if you have a higher rental income. A four-bedroom house rented to one family can be rented for PS800 per monthly, while four tenants pay PS400 each. To attract tenants, you might charge a rent plus all bills. Your costs will be much higher.
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.
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.