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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.
HMO mortgage lenders will typically take rental income into consideration. This can dramatically increase the mortgage amount. HMO mortgages can offer variable and tracker rates. LTV rates are usually set at 80% LTV. Rates that offer attractive rates come with higher deposits and lower LTVs.
Are HMO mortgages different? - HMO mortgage rates tend to be higher than standard buy to let mortgage products. This is because the HMO mortgage market is less competitive in terms of the number of lenders. Lenders that are prepared to lend on an HMO will charge slightly higher fees and rates for a mortgage.
An HMO, as many call it, is actually a large HMO. It is a rental property where five or more tenants share the bathroom, kitchen, and toilet facilities. A building may also have a number of stories. A HMO licence is required by landlords to operate Large HMOs. It will be valid for five-years and is sometimes called Licsenced HMOs.
Number crunching will make your HMO more profitable. Our HMO mortgage advisors are experts and can help maximise your rental income. Securing the best deal for your HMO is key to making it profitable. Majority of lenders that offer preferential rate often do so through mortgage brokers.
A HMO mortgage lender will also take into consideration your rental income. This can greatly increase the amount of mortgage available. HMO mortgages may be offered at variable or tracker rates. LTV rates start at 80% LTV. Lower deposits and higher LTV ratios lead to more attractive rates.