| Product | Fees | Further info | |
|---|---|---|---|
|
5 yr fixed 4.89%
5 year fixed rate |
£3,999 lender arrangement fees (can be added to mortgage)
|
Subject to status and further lending criteria apply. |
|
|
2 yr fixed 4.69%
2 year fixed rate |
5% lender arrangement fees (can be added to mortgage)
|
Subject to status and further lending criteria apply. |
|
HMO Mortgages
Contact our experienced HMO Mortgage Brokers and discuss your HMO mortgage lending requirements. We are experienced in all types of HMO finance, large or small, including own name or via a Limited Company, or even in a Trust.
- Call us for the latest HMO rates and receive our 5 star customer service
- £0, No Broker fees typically for our Mortgage Advice
- Independently family owned firm, offering Independent Mortgage Advice
- Talk to an experienced HMO Mortgage Adviser between 8am-8pm Mon-Thursday, or 8am-5pm Fridays
Contact us for a free, no obligation conversation on how we can help you.
We offer HMO Mortgage advice as we are independent specialist mortgage brokers without ties to a restricted mortgage panel. This means we have access to more lenders and this enables us the opportunity to access typically better mortgage rates. When securing finance for an HMO property with 6 bedrooms or more, you may find the rates are higher, contact us today to receive an up-to-date, accurate quote.
Mortgage/Finance Enquiry
We will contact you to Advise on the latest rates, 8-8pm Mon-Thursday & 8-5pm Friday
The popularity of Houses in Multiple Occupation (HMO) properties has increased over recent years and with it the availability of specialist HMO mortgages. With greater potential for higher yields and higher monthly profits than traditional Buy to Lets, HMOs have become an appealing choice for many landlords. However, the HMO market is a specialist one and it’s important to understand the rules and regulations before taking the plunge.
Seek Professional HMO Mortgage Advice For The Following:
Licensing
If you have a property with five or more tenants, from two or more separate households who share facilities, it’s likely you will require an HMO license and therefore an HMO mortgage. This must be checked with your local authority as they will make the final decision. If your HMO doesn’t require a license then you’ll need a multi-let mortgage.
Legal Obligations
The legal obligations for an HMO are more involved than a standard Buy to Let and cover areas such as the suitability of the property, maintenance requirements, gas safety checks, electrical & fire safety checks, planning and insurance.
Private Individual vs Limited Company Ownership
There will be different financial and tax implications for your HMO depending on whether you operate as a private individual or a limited company. Our partners at GetGround are offering all Vincent Burch clients and enquiries a free consultation to discuss the pros and cons – find out more here.
Mortgage Criteria
As well as age, income and credit history, HMO mortgage lenders will consider factors such as property value and height, landlord experience and occupancy as well as kitchen and communal facilities.
Receive a Mortgage Quote
Advice that’s tailored to your own bespoke situation.
Enter your contact details and we will contact you, typically within 10 minutes (during normal business hours).
Find the Best HMO Mortgage
Securing the best HMO mortgage finance can be a complicated process, so it’s important to make sure you’ve got everything covered.
As an independent broker, at Vincent Burch Mortgage Services we can access the best rates and deals on HMO mortgages from a range of specialist lenders such as Lendinvest, Landbay and Aldermore. Our team of friendly, experienced advisers can guide you through the process, ensuring your application meets the necessary criteria and giving it the best chance of being accepted the first time.
For a competitive quote and secure the right Buy to Let HMO mortgage for your investment needs, call 01603 340644 or email [email protected]
HMO Mortgage Advice – Frequently Asked Questions
What is an HMO mortgage?
An HMO (House in Multiple Occupation) mortgage is a specialist mortgage which is used to finance houses or buildings that house multiple parties such as house shares and student properties.
Can I get a mortgage on an HMO?
Yes, it is possible to get a mortgage on an HMO. These mortgages are offered through specialist lenders and are usually taken on an interest-only basis. These mortgages may be subject to a minimum HMO property value, early repayment charges or other product arrangement fees.
It is worth noting that they have a higher interest coverage rate (ICR) and often have higher interest rates than standard BTL mortgages. Also, lenders generally want experienced landlords, although some lenders may consider first-time landlords.
What is the minimum deposit for an HMO mortgage?
The minimum deposit required for an HMO mortgage usually requires an LTV (Loan To Value) ratio of 60%, 75%, 80%, 85% or less. Meaning you need to pay at least a 15% deposit on HMO mortgages.
However, the mortgage affordability will be assessed by the lender using their ICR calculations and this could restrict higher LTV lending. Most Buy to Let mortgages are advised at 75% loan to value, as this is where the lenders start being more competitively priced and the larger deposit, then likely to get a cheaper interest rate.
Do you pay stamp duty on an HMO?
Paying stamp duty on an HMO property can be a complicated matter. You may be entitled to a multiple dwelling’s relief depending on how the property is arranged. Contact us for more information on how much stamp duty is paid on HMO properties.
Stamp duty on most HMOs is usually treated as a second residential property. However, mixed-use properties which also have HMO are usually considered as a commercial property and not a residential property which has C3 or C4 use.
Can I get an HMO mortgage if I have adverse credit?
It is possible to get an HMO mortgage if you have adverse credit, however, it depends on the severity and length of your bad credit history. The more recent and larger the credit amount, the more likely you are to pay an increased interest rate.
