Purchasing or refinancing buy to let HMO (House of Multiple occupancy) or multi tenant property? Call us today for latest deals on the market.
A HMO property is generally regarded as a property with 5 or more tenants and with 3 or more stories. This can vary from region to region according to your local Councils own definition of a Home of multiple occupation.
BTL lenders definitions of what is a HMO can also vary. Some mortgage lenders will allow multiple tenancies within a rented property, but will not accept registered HMO's, so it is important to get all the facts together before embarking on a purchase of such investment rental property. Lenders also have restrictions on how many existing BTL or HMO properties an applicant can have at the time of the mortgage application.
We can also arrange finance for Student & House share (Multi Let Mortgages).
Effects of the credit crunch on BTL & HMO lending.
Previously property investors enjoyed being able fund their purchases of high yield HMO multiple occupancy property with deposits as low as 15%, with 85% of the purchase price or property value being funded by the mortgage. During this economic downturn we have seen lenders continually reducing the amount they are willing to lend down to 80% and now 75% across the general BTL mortgage market. We have also seen key lenders in the HMO market changing lending criterias, rental calculation values, and major factors such as maximum number of letting rooms allowed. Some major players in the market have withdrawn all HMO or multiple occupancy lending products altogether.
We have contacts with every lender in the market today and have continued to arrange HMO and multiple occupancy mortgages for our clients, either purchasing or remortgaging property.
