hmo mortgages santander
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.
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.
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'.
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.
HMO Values - The methods used by lenders to value properties can vary. Lenders can use traditional surveyor inspections, and compare it to similar properties in the area. If there is no HMO in the area then the valuation will take into account the value achieved as though it were a single family. However, this doesn't account of the extra income HMOs usually attract by having multiple rental earnings, which can limit your ability to borrow.
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.
HMO mortgages take the same amount for lenders to process as any other buy-to-let mortgage. Each case is different. Pre-pandemic it would take three to four months to receive a purchase offer, and another four to six weeks to complete.
HMOs are more risky than regular BTLs. HMO tenants tend to move more quickly because they are not related, which increases the chance of voids and unpaid rents. They may be less committed to the property, which can lead them to take less responsibility for its upkeep and care. It can be harder to spot any damage or problems with a tenant.