HMO Mortgages
Buy to Let Mortgages for Multi Lets* (Small HMO’s not requiring a licence).
Despite what some brokers will tell you – you do not have to pay ‘commercial rates’ for small multi tenanted properties.
As with most buy to let options expert guidance is recommended but this is the more straightforward and cheaper to finance for you – we can use mainstream buy to let lenders.
“We can help you use the cheaper mainstream lenders, it will save you thousands in interest”
When we say multi-let – typically we’re talking about 2-4 tenants (either professionals or students). With this route you’d be able to enjoy standard buy to let rates that would typically litter any best buy tables but it’s not transparent as to exactly who does what. That’s where our experience plays it’s part.
To give you some insight quite a number of mainstream buy to let lenders will allow up to 4 tenants on one AST (Assured Shorthold Tenancy) and a smaller number of lenders will allow seperate ASTs. There are other things to consider too, for example – locks on internal doors, the number of kitchens, whether a communal room remains downstairs and whether or not downstairs rooms are let as a bedroom/s.
Any early research and quotes we do for you are always free of charge*, so please don’t think twice about getting in touch. Request a quote now, and we’ll do the rest.
* Initial consultations are completely free of charge. There’s no obligation to proceed and our broker fee of £999 will only become payable if we proceed to a full application.
Buy to Let Mortgages for licenced HMOs
Since the vast majority of standard buy to let lenders do not lend in this space, finance does tend to be more expensive for houses of multiple occupation, and broker input really is the solution. But again, you do not have to take commercial finance. Depending on what you want, there are usually some better options before we get to the commercial offerings.
We’re talking here about any property that is let to 5 or more professionals or students.
Lenders tend to require experience, but if you don’t have any experience – it’s not a deal breaker, but it does cut down your available options.
Lenders such as Kent Reliance, Shawbrook, Paragon, Leeds, TMW, and even BM Solutions in some scenarios as well as some high street commercial lenders can all help with licenced HMO’s. But numbers of bedrooms and your experience level as an investor will dictate who’s interested and who isn’t.
The financial conduct authority does not regulate some forms of buy-to-lets.
Your property may be repossessed if you do not keep up with payments on your mortgage.
