When assessing the worth of your HMO, lenders may consider the rental income. This is especially advantageous if you intend to withdraw equity from the property.
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.
Traditional rental properties can be found in almost any location. We have worked with many letting agents all over the country and they have rented properties at almost any location. They've been rented anywhere, in rural or urban areas.
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.
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.
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.
You can usually make more from an HMO as a landlord than by renting to a family. You will be able to charge each room separately, which can lead to higher overall charges. A specialist mortgage is required to achieve this.