How do HMO mortgages work?
HMO mortgages have similar features to a standard BTL mortgage in many ways, however, lenders will expect to see a more in-depth profile of information before making a decision on your application. This will include details on the property itself, its existing tenancies, rental yield, whether the landlord manages it or uses a management agency and so forth.
The mortgage itself will be repaid each month on either an interest-only or capital-repayment basis, set at the start of the term. Additional fees must be factored into the anticipated return carefully, as fees and other costs rapidly erode the higher-returns that make this type of property so attractive. Our team can help you to find the most competitive mortgage to keep your fees low, for the right product.
HMO mortgages for limited companies
HMO mortgages for limited companies are widely available, as this type of structure is commonly used by landlords for tax benefits. Our team can help you to assess the best HMO mortgages for limited companies available, for rapid completion.
Can a first-time buyer get an HMO mortgage
Most lenders prefer experienced applicants because HMO lets are more complex than single-occupancy BTLs. For example, they often require a licence, locks on each room, additional health and safety checks and so forth. However, some lenders are happy to offer HMO mortgages for first-time landlords. Speak to our team to find out which rates might be available to you at this time.
HMO mortgage rates
HMO mortgage rates are predicated against the Bank of England base rate, in common with most other types of long-term mortgage. Mortgage rates change according to BoE changes and market factors, and lenders will adjust their rates over the course of the year and can remove deals at any time – although some lenders will allow applicants to pay a booking fee to reserve a deal at that date, pending processing. Rates for HMO mortgages tend to be more expensive than BTL mortgages because of the higher risk involved. However, mortgage rates vary widely – as do the accompanying fees.
Hank Zarihs Associates has access to some of the most competitive rates on the market via our large panel of ready, motivated lenders with significant expertise in the field. Contact us today to find out the best deals for your applicant situation – we only need a few minutes to gather your information and can have your tailored offers returned within the hour.
Can I get an interest-only HMO mortgage?
Yes, there are options for interest-only and repayment HMO mortgages. Many applicants choose interest-only mortgages to maximise their income, whilst anticipating that the property itself will increase in value over time and grow their asset value and proportional ownership.
Speak to our brokers today!
The team of experts at Hank Zarihs Associates has years of experience in organising HMO mortgages, along with other specialist development and investment funding sources for individuals, companies, trusts and other business borrowers. Whether you need HMO finance, bridging loans, development finance, auction loans, BTL mortgages or another form of development or investment loan, we can help you.
What’s more, we do so fast – working with our tried and tested panel of experienced lenders in the field who are ready and motivated to lend. It only takes a few minutes to gather the information that we need to contact our lender panel and we can provide a tailored illustration within the hour for your review. From this point, we handle the administration for you, allowing you to focus on your business and await confirmation that your mortgage or loan has been set up.