hmo finance jobs london
What returns can I expect from an HMO
Traditional rental properties don't have to be located in a particular area. The country's leading letting agents have rented property in virtually every location. They can be rented in any location: rural, urban, or country.
A House in Multiple Occupation or HMO is a property which is let to more tenants than one family. It is where tenants share rooms and occupy their private bedrooms. the lounge, kitchen and bathroom. An HMO is when people refer to a flat share or a house share.
What returns can I expect from an HMO
HMO mortgage lenders may also require information about the property. Some require that the property only have one kitchen or that tenants can share a common area. Other requirements include a limit on the number of floors and bedrooms, as well as limiting how many bathrooms and other restrictions. A lender must also agree to allow you to renovate the property before you rent it. A mortgage broker can help navigate through all of these restrictions to help you find a willing lender.
However, this does give unlicensed HMOs a negative connotation. It suggests that they are illegal or "fly-by-night". These smaller HMOs are often referred to by local authorities, lenders, and owners as multi-lets, "HMOS not Required To Be Licensed", or "nonlicensable MMOs".
Because this is a more complex type of property, lenders will not offer loans to such cases. However, those who are willing to offer them will likely have their own criteria.
HMO mortgage lenders are likely to take your rental income into account. This can help to increase your mortgage limit. HMO mortgages could be offered at tracker or variable rates. LTV rates generally start at 80% LTV. More attractive rates can be offered with higher deposits or lower LTV ratios.