For a great long-term return, it is important to get the best finance deal. Reach out to our HMO Mortgage finance specialists.
Naturally, higher potential rewards are associated with higher risk. A traditional buy to let will have a higher turnover, but you're also more likely than a traditional buy to let to have tenants that leave. Each additional tenant is an unknown variable (e.g. What will their rent be? Do they cause any damage? Are they likely to cause problems? Also, you will need a specialist mortgage.
HMOs can be a great option for tenants as they are often affordable, fully furnished and include bills. This is especially true if you are a student, contractor or an overseas employee who is on a work visa. HMOs appeal to people because they are easy and cost-effective.
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.
What is an HMO-mortgage? HMO mortgages can be used by landlords to rent their property to more tenants than one household. These specialist buy to let mortgages offer some key distinctions.
HMOs may not be valued equally by lenders. Some will base their valuation on rental income, while others will base it on the HMO being a regular home. This can reduce the amount you are able to borrow, which defeats why an HMO mortgage is needed.
You need to get the best financing deal possible in order to achieve long-term returns. Our HMO Mortgage Finance specialists are available to assist you.