What is commonly called an HMO but is in fact a large HMO. This is a property that has five or more tenants and where they share a toilet, bathroom, or kitchen. The building may have a certain number of stories. To operate Large HMOs, Landlords will need to have a HMO license. This licence is valid for five year and can be referred to as Licsenced HMOs.
HMO finance rates The exact rate of interest you pay will depend on your lender and their willingness and ability to consider your personal circumstances. This includes your experience, the number bedrooms and the location.
Students and young professionals rent HMOs because they may not have the financial means to rent an entire property and can't move in with their partner. Although renting a room is cheaper than renting an entire property, the total rent for all rooms is often more than what could be charged to one family. An HMO can provide a landlord with a better rental income.
A number crunching is necessary to make an HMO a profitable one. Our HMO mortgage specialists can help you maximise your rental income. They will also assess your proposal. You can make your HMO as profitable and profitable as possible by securing a great deal. A majority of lenders offering preferential rates do so via mortgage brokers.
HMOs are often considered more risky than standard BTLs. HMO tenants can move faster because they aren't related and have a greater chance of voids. They are less committed to the property and can take less responsibility for its maintenance and care. Tenants are also more difficult to identify if there is damage or a problem.
HMO mortgage requests take approximately the same amount time to process for lenders as other buy to lease mortgages. Every case is different. Pre-pandemic, it took three to four weeks to get a purchase loan offer. Then, it took four to six additional weeks to complete the transaction.
Your HMO may not require a license. This could make it unsuitable for an HMO mortgage. Therefore, lenders may only offer you a mortgage to buy and let.