HMO properties are more likely to yield higher yields but they can be more difficult to set up. A HMO licence may be required by landlords depending on the HMO's nature.
HMO mortgages may only be available to experienced landlords. Lenders will not accept applications from anyone who has been a landlord for two years or more and/or has experience in HMO leasing. Additional requirements may be required by lenders. A HMO mortgage will not be approved for a first-time landlord. Instead, you'll need to rent a property to one household.
Location is not a limitation for traditional rental properties. We work with letting agents across the country who have rented properties in nearly every possible location. They've all been rented, whether in the country, city or rural.
Complex property types will require more risk-averse lenders to be open to lending to them. Even those that are willing to lend to them, they will each have their own criteria.
There are a small number of UK specialists who will lend on large HMO property and understand the risks associated with multiple tenants. They each have their own definitions for HMOs and what they will lend against. A broker can help you create your application and match you up with the right broker. CMB is an experienced broker who can package your application in a way that suits the lender. This speeds up the entire application process.
What is HMO finance? - An HMO mortgage is a type of mortgage specifically for landlords who want to rent out their property to more than three tenants who aren't from one household.23 Mar 2022
HMOs without licenses are not eligible for a mortgage. Lenders might instead offer you a buy to rent mortgage.