Increase your rental yield by obtaining Low HMO Mortgage Payments. Find the best HMO Mortgage for your circumstances
at 60% LTV
at 70% LTV
at 80% LTV
* 2 Year Fixed Mortgage Rates, correct as of 04/10/2018.Get a Free Quote Today!
At the end of 2016 Precise Mortgages launched its "cheapest-ever HMO two-year tracker". Followed in 2017 by Two New HMO Mortgage Lenders Launched (Fleet Mortgages, Foundation Home Loans) and in 2018 Landbay.
With the increased competition..
If you have not reviewed your HMO Mortgage since you could be missing out.
We work for you, to get the best rates in the market.
Just £100 Upfont Fee.
Whole of Market
We comprehensively search 20 HMO Lenders.
Our mortgage advisors are with you every step of the way.
Apply Online or on the Phone.
Qualified Advisers & FCA Authorised Firm
Our Refurbishment Buy to Let product offers you the best of both worlds when financing your HMO Conversion - the flexibility of Bridging Finance with the security of a long term mortgage once the property has been refurbished. Ask about our HMO Conversion Mortgages.
You have many options on how you wish to send us your details for your No Obligation Free Quote:
|LTV||Purchase / Remortgage||Limited Company||Rate|
|85%||Purchase & Remortgage||Both||4.59%|
|80%||Purchase & Remortgage||Both||3.49%|
|75%||Purchase & Remortgage||Yes||2.99%|
|70%||Purchase & Remortgage||No||1.61%|
|70%||Purchase & Remortgage||Yes||2.99%|
|65%||Purchase & Remortgage||Yes||2.89%|
|60%||Purchase & Remortgage||No||1.44%|
* 2 Year Fixed Mortgage Rates, correct as of 04/10/2018
We have a wide variety of House in Multiple Occupation (HMO) mortgage lenders with differing products and criteria. Some available via mortgage advisers only and others exclusive products. Some of the lenders we use are:
Aldermore Mortgages, Axis Bank, BM Solutions, Barclays Bank, Fleet Mortgages, Foundation Home Loans, Interbay, Kent Reliance, Keystone, Landbay, Leeds BS, LendInvest, Magellan Homeloans, Masthaven, Paragon Banking Group PLC, Precise Mortgages, The Mortgage Lender, The Mortgage Works, and Vida Homeloans.
We compare them all - exclusives and direct, so you don't have to.
... read more on Who does HMO Mortgages?
The HMO secor had some HMO Licence changes in 2018, this removed the requirement for a "Licenced HMO" to be 3 or more stories. You will now require a licence when:
Any property renting to five or more people form two or more separate households, sharing basic amenities.
In addition your council may have an Article 4 Direction, requiring Selective Licensing. You may require planning permission and meet new minimum room sizes. If applicable it may effect mortgageability, ask your mortgage adviser how.
The HMO rules are varied and changing, if you are getting started then I hope our directions will set you on the right path.
... read more on HMO Regulations in 2018
The rent a HMO can obtain limits the maximum loan a lender will provider. Calculate the maximum loan acheiveable:
The Section 24 Taxation Changes has led to increased appetite in HMO Landlords purchasing via a Limited Company, in order to limit taxation. To proceed with this route or not, is a discussion a Landlord needs to have with there accountant.
The benefits for some are clear - for others the higher mortgage costs and accountancy fees may have your accountant recommending purchasing in personal name.
We will find for you the best Limited Company HMO Mortgage for you, including incorporating the HMO SPV Company where applicable.
... read more on Limited Company HMO's
The definition changes from Planning, HMO Licensing and Finance.
With mortgage lenders it often down to the Tenancy Agreement and arrangement of the property. Sometimes we can get finance on Standard BTL Rates if the occupants are on one AST, sharing amenities with no locks on doors (like a corporate let or student let). If the property has multiple tenancies housing unrelated people you will often require a HMO Mortgage.
A HMO Mortgage or not - our team can help identify the best lender. To get you the best rate where applicable.
... read more on What is a HMO Property?
Processing a HMO Mortgage application takes roughly the same amount of time as any other application. On a HMO Purchase a typical time frame of 2 months, quicker if using Bridging Finance or Remortgageing. Of course some lenders are faster, some are slower; often it depends upon the complexity of the application.
An additional step for mortgage lenders is to check if you have a HMO Licence, Planning (if required) and Selective Licensing (if required). Often it will be a mortgage condition that you are deemed "fit and proper" to run a HMO, this allows lenders to grant finance on sight of an application (for the licence).
... read more on Processing Times for HMO Mortgages
We have access to lenders that will lend to DSS Tenants, Students and Rent to Rent for example.
Options do get limited as many mortgage lenders making it a condition that you do not rent to people in receipt of housing benefit, as they are perceived as higher risk.
... read more on HMO Tenant Types
Most HMO Lenders value on a "brick and mortar" basis but a few allow "investment" basis valuation.
A Brick and Mortar valuation is what you'd expect from a standard residential valuation. It is based on the resale value of the property as a normal home. Comparable perhaps with other none-hmo properties on the street.
An Investment Valuation instead values the property as a business, basing the value on a multiple of the rent obtained.
In different circumstances one may be better than the other. An Investment Valuation may give a greater value but often products are fewer, giving higher rates and lower LTVs.
... read more on How are HMO Properties Valued?
The rental income from multiple rooms (compared to renting the property out as a single family) often results in higher aggregate rental income. This is why letting a property as an HMO may be more profitable than to a single family unit.
Unfortunetly tenant turnover may be higher with tenants staying in a HMO for shorter periods. This can result in higher management costs and increased frequency of decoration.
You also want to be confident in demand, that there are tenants looking for property share properties in the area.
... read more on Are HMO's a good investment?
You can obtain HMO Mortgages up to 85% LTV.
This means you will only require a deposit with 15% of the value of the property.
Unfortunately the mortgage costs are higher, stepping up from 80% LTV to 85% LTV can see interest rates over 100 base points higher.
Remember - the maximum loan you can obtain is also limited by the rent that is obtained, as a rental affordability test.
... read more on Maximum HMO Loan-to-Value (LTV)
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
HMO.Mortgage & Bespoke Finance are trading styles of Bespoke Finance Direct Limited
Bespoke Finance Direct Limited is authorised and regulated by the Financial Conduct Authority (No. 715805) to transact regulated mortgages.
The FCA does not regulate some investment mortgage contracts.
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