HMO Finance Rates The lender's willingness to consider your individual circumstances (e.g., your experience and the location) will affect the rate of interest that you are charged.
But what is often called an HMO by many is actually a large HMO. This refers to a rental property that houses five or more tenants. The tenants share a bathroom, toilet and kitchen. You may also need to have a set number of stories. For a Large HMO to be operated, the license must be held by the landlord. The licence will last five years and can also be called Licsenced HMOs.
Lenders are not recommended for anyone looking to secure a mortgage. An expert can ensure you get the right lender for you and the best rates possible. You can contact us at any time to inquire or just ask our experts about your mortgage questions.
What is a HMO, exactly? What is a house in multiple occupation? A standard HMO can be run by a landlord with no more than four people. HMOs require different mortgage requirements than buy to let mortgages for entire-property tenancies.
Multilets are similar to HMOs in that they can be rented to tenants who are not related and share common facilities within the property. However, their main difference is that they are unlicensed.
HMOs can be complex and buy to let lenders may only lend money to experienced landlords. While criteria may vary from lender to lender and are subject to change, typically a minimum of two years experience as a landlord will suffice. While some lenders will consider you a first-time landlord, most will require that you use a property manager to manage the property. Our buy-to-let team will help you determine whether you qualify for an HMO loan.
After you have gained experience in the letting of property, you may be ready for HMOs. An HMO mortgage specialist will be required to help you buy or convert an HMO property. If you currently own a property in a normal buy-to-let mortgage you will need remortgaging to an HMO.