hmo mortgages 2021
Students can get their rent guaranteed, often by their parents. They also have a natural limit on the length of their tenancy.
A traditional property to buy and let would normally accommodate one person or a whole family. Renters would pay a single rent payment, either weekly or monthly. The household would also be responsible for paying the utility bills. These are sometimes referred to as "singlelets".
HMO mortgages can be offered by 27 lenders at the time this article was written. 23 of these loans are available to Limited Companies. HMO mortgage rates are higher than those for buy to let because this is a more specific property type. For landlords, rates have become more competitive due to increased competition in this industry. Rates start from 1.64% (individuals) and go up to 2.69% (limited companies).
Students can get their rent guaranteed, often by their parents. They also have a natural limit on the length of their tenancy.
HMOs can be restricted to certain areas. HMOs can be targeted at specific tenants such students and single professionals. HMOs are often located in central areas or near major bus routes and amenities. It would be pointless to have an HMO located in a rural area in the middle-of-nowhere.
HMO finance rates The exact rate of interest you pay will depend on your lender and their willingness and ability to consider your personal circumstances. This includes your experience, the number bedrooms and the location.
Young buyers are still unable to afford a home, so the demand for affordable rented accommodation is high. You can check the local listings sites (Gumtree and Zoopla) to see how strong the demand is from prospective tenants.
HMOs have higher operating costs, and often require more work and time. HMOs require that each room be secured and have safety and health guidelines that are much more thorough than regular buy to lets. HMOs will have higher setup costs than regular buy-to-let.