The location of traditional rental properties isn't a problem. Our nationwide network of letting agents has rented properties in every possible location. They have been rented in every location, from rural to urban.
Which tenants can my HMO target? - Low-cost housing / affordable housing / Housing benefit tenants: Some landlords opt to rent out their entire property to local authorities in order to receive a low-cost, steady income. - Working professionals: Increasing numbers of people rent into their 30s and 40s. These tenants are looking for properties that have higher standards, such as more bathrooms and more stability, in order to live a less stressful life. -
A traditional buy-to-let property could accommodate one person, or a large family. The household would have to pay one rental payment on a weekly and monthly basis. The utility bills are also paid by the household. These can be called'singlelets'.
An HMO mortgage lender will often take rental income into account. This can significantly increase the mortgage amount. HMO mortgages are available on tracker and variable rates. LTV rates typically start at 80% LTV. Higher deposits and lower LTV ratios offer more attractive rates.
This gives the term "unlicensed MMOs" a pejorative connotation, implying that they are either illegal or flying blind. Some local authorities, lenders and owners refer to these smaller HMOs in the following ways: multi-lets; "HMOS Not Required to Be Licensed" or "non-licensableHMOs".
A House in Multiple Occupation could be more profitable than traditional buy and let. With low interest rates landlords can maximise rental yields because of the high demand for rental properties in the UK. A mortgage that is right for you will ensure your rental income makes the most of your profits.
Buy to Let mortgages are typically cheaper in terms fees and rates, and there are many lenders who offer them. Because they are more flexible, they can be easier to obtain. However, HMOs can sometimes make more than the mortgage cost.