What is an HMO mortgage?
HMO stands for house of multiple occupancy, for example, when a large house is let room by room, usually with all bills included. You can potentially have seven or more tenants in one property.
What are the different types of HMO mortgage?
The mortgage you need will depend on your tenant type, because a variety of people might stay in an HMO property. If you target blue collar workers and professionals, for example, you could have a house next door to a hospital. Student lets are slightly different, and you also have housing benefits or local housing authority lets.
Commercial Bridging Loans
Is student accommodation is classed as an HMO?
Anywhere with three or more unrelated tenants is classed as a house of multiple occupation, which would include student housing.
Property Development Loans
Can anyone get an HMO mortgage?
You need to be a homeowner to get an HMO Mortgage. The market has a lot more products available than there were a few years ago, because you get a higher rental yield from HMO, making it more attractive for the property investors.
For the majority of HMO mortgage products, you will need to have one to two years landlord experience. There are lenders that will accept first time landlords if you own your own property, but most of them require some sort of leasing experience.
However, there are ways around this. Speak to us to find out more