A House in Multiple Occupation, also known as HMO, is a property being rented to several tenants. Some of these tenants may share the same facilities such a bathroom or kitchen. HMO permits landlords to rent a property to multiple households, instead of renting it to one household.
What is HMO finance? - An HMO mortgage is a type of mortgage specifically for landlords who want to rent out their property to more than three tenants who aren't from one household.23 Mar 2022
The demand for affordable rental accommodation is strong as the rising cost of purchasing a home makes it difficult to afford one. To assess the demand from potential tenants, check local listing sites (Gumtree. Zoopla. Rightmove ).
HMO houses can be more lucrative than regular buy-to-let investments. HMO mortgages are becoming more popular among landlords. But do you really need one? Or can a traditional buy-to-let mortgage suffice?
HMO mortgage requests take approximately the same amount time to process for lenders as other buy to lease mortgages. Every case is different. Pre-pandemic, it took three to four weeks to get a purchase loan offer. Then, it took four to six additional weeks to complete the transaction.
Students: You can have your rent guaranteed (often by your parents) and usually have an automatic limit to the length their tenancy.
HMO (Houses in Multiple Occupation) may be more profitable that regular buy to rent investments. HMO mortgages are also becoming more popular with landlords. However, is it really necessary to have an HMO mortgage? Can a traditional mortgage be sufficient?