HMO licenses are subject to different conditions by individual councils. However, you should be aware of these requirements before you apply. HMO licences can only be obtained if required by the local authority. A fine of up to PS20,000 is possible for renting an HMO licensable without a licence.
HMO Finance Rates The lender will determine the exact interest rate you pay and how willing they are to take into account your specific circumstances, such as your experience, the number and location of the bedrooms.
HMOs can be rented by students or young professionals who cannot afford to rent the entire property. They may also not be settled enough to move in together. A tenant can rent one room for less than an entire property. However, the total rent for all of the rooms is typically higher than what could be charged to a single household. HMOs can bring in a higher rental income for landlords.
Multi lets work in the same way as HMOs, except that they are rented to non-related tenants and they share the common areas. The main difference is that multi lets are not licensed.
It is crucial that you get the best possible deal on your financing to ensure a long-term return. Get in touch with our HMO mortgage finance specialists.
As the price of a home is rising, young buyers still have a strong desire for affordable rented accommodation. Look at local listing websites (Gumtree. Zoopla. Rightmove ) to determine the strength and demand from prospective tenants.
Are HMO mortgages different? - HMO mortgage rates tend to be higher than standard buy to let mortgage products. This is because the HMO mortgage market is less competitive in terms of the number of lenders. Lenders that are prepared to lend on an HMO will charge slightly higher fees and rates for a mortgage.