An HMO is a House of Multiple Occupancy.
HMO Buy To Lets provide for property investment mortgages where single properties are occupied by multiple individuals, each with their own AST or license to occupy. Occasionally we see properties let under a single commercial lease which is also acceptable.
Properties are usually former standard construction houses that have been re-developed and split out to provide a greater rental yield/return.
Generally, for properties with up to 12 individual lettable rooms, mortgage products are available that look very similar to Simple Buy To Let.
Expect loan to values (LTV’s) to be capped at 75% and also expect interest rates to be a little higher – ranging from approximately 3.25-4.25%
For larger properties, more bespoke financing is available.
Mortgages are available for refinancing or for purchasing new properties. If you are seeking to create your own HMO, then please view our Refurbishment Product page.
The affordability of the loan is based primarily on the rental income the property generates (or will generate if currently empty). Top slicing is again available.
HMO Buy To Let mortgages are offered subject to valuation and completion of security. It is vitally important the valuer assess the property under an investment valuation.
We have access to products for professional landlords and first-time landlords.
Acceptable customer types include: Sole Trader, Partnership, Limited Company (Ltd) or Limited Liability Partnership (LLP).
Speak to one of our team. We are here to help