HMOs are houses of multiple occupancy. Unlike a regular rental property, which will contain one family, HMOs are lived in by a number of unrelated people, each paying their own rent.
For landlords, these are excellent earners as a per person, per room rate can often far exceed the amount made from renting the entire property to one person/family. Students will typically live in shared accommodation, but in many parts of the country there is good money to be made from professional house shares. This is especially true in high priced areas like London and the south east.
When it comes to obtaining an HMO mortgage the process is the largely the same as that with buy to let mortgages, however the number of lenders willing to finance a multiple occupancy purchase will be significantly reduced. Some buy to let lenders will permit landlords to rent rooms to up to four people, without enforcing any additional requirements, but others will be far less lenient and it is important to know who to apply to before starting the house buying process.
In some cases, you will need to obtain a multi let license from your local authority, and obtaining finance in this case is even trickier. Thankfully, at Ravenwood Services we have professional advisers who can talk you through the do’s and don’t s of multi unit let mortgages and give you guidance on your next steps.
There are a lot of details that we need to know before we decide what HMO lender to approach for an application. Did the property have a license with the existing owner? Are you converting a family home to a Multi let? What are the exact number of Bathrooms and Kitchens. The more information we have will mean that we can get you the best deal available.
Hmo Mortgage Lenders
We have a relationship with all the specialist Hmo lenders. Not only that, so more conventional But to let lenders that can be persuaded to “let through” some types of homes of multiple occupancy property on normal buy to let terms.
If you have any queries, please call our London office phone number. Our specialist brokers would love to help.
If your looking for a remortgage bad credit as long as you have good proofs of your income it should go through quite easily as long as the loan to value isn’t too high.