Welcome, investors! Today were are taking a look at HMO Mortgages. What is a HMO mortgage? And how easy is it to get one? Remember that if you apply for the wrong type of mortgage knowingly, that could constitute as mortgage fraud, so it is important that you are honest with your lender.
What is an HMO? / Why do you need one?
A House in Multiple Occupation (HMO) is a rental property with three or more unrelated tenants who may share facilities such as a bathroom or kitchen. Rather than renting a property to a single household, landlords can rent it to numerous households through an HMO.
You’ll need an HMO mortgage if you’re renting to more than three tenants from different homes. Because buy to let mortgages are exclusively designed for single-household tenants, your property will not qualify for one. If you had a standard mortgage on an HMO, you’d be violating the terms and conditions of the loan, which could lead to legal action from the lender.
Rates and costs for buy-to-let mortgages are frequently lower, and there are undoubtedly more lenders who offer them. They’re also lot easier to obtain because the requirements are less stringent. However, the extra profit that an HMO may make frequently covers the increased expenditures associated with the mortgage.
Best HMO Companies
Mortgage Xperts
Mortgage Xperts are always polite, swift, competent, and efficient when it comes to complex residential mortgages, bridging loans, buy to let, and development finance. Their knowledgeable and courteous staff will be happy to assist you and answer any questions you may have on HMO Mortgages.
From dealing with intricate bridging needs to assisting first-time purchasers looking to take their first steps onto the property ladder, a member of their team will be able to help you. They are well-versed in the financing of HMO properties and can give you the correct advice to succeed.
Summit Management
Summit Management are specialist HMO and residential property management agents serving Merseyside, Surrey, and West Yorkshire.
They collaborate with landlords to provide safe and secure shared houses for professionals and single-let residences for families of all shapes and sizes. They handle all aspects of the letting process, including comprehensive property management, acquisitions, and dispositions.
Landlords can rest certain that their properties are in good hands with SummitManagement, and tenants can expect top-notch care during their lease.
S2i Management
S2i Management is a one-of-a-kind property management firm established in Liverpool that serves the entire Northwest of England. By taking over landlords’ properties, they are committed to providing landlords with hassle-free HMO management services. Some investors enter the property management business without realising how difficult being a landlord can be. The S2i staff understands how time-consuming it can be to be a landlord and can assist you.
Now rooms Liverpool
Atlas Estate Agents is a Liverpool-based letting service that specialises in student and professional room rentals. They handle properties in Wallasey, New Brighton, and West Kirby in North Wirral, as well as Sefton Park, Kensington, City Centre, and conventional house share neighbourhoods in South Liverpool and Crosby and Orrell Park in the north. They work with a variety of landlords, including those who reside in Liverpool, others who live too far away across the county, and still others who live abroad. They’re a fantastic HMO lettings and management company.
Maison Lettings
Maison Lettings will help you navigate the legal and administrative minefield, ensuring that your rental income is maximised by achieving the highest possible rent and minimising void rent loss; locating carefully selected and fully referenced tenants; and ensuring that your property is properly maintained.
By asking them to operate as your Letting and Management Agents, you can be certain that your asset will be in professional, safe, and loving hands. Because Maison is a member of CM Protect, you can rest assured that all client funds are appropriately protected.
They’re also a member of the Property Restitution Scheme, which has been approved by the Department of Communities and Local Government to provide redress to Letting and Property Management Agents’ customers. They also specialise in HMO and do an excellent job with it.
Advantages
- HMOs can produce greater rental yields than standard buy-to-let houses, up to three times more in some cases.
- Because tenants are looking for affordable rooms to rent, demand for shared living accommodation tends to stay strong even when the economy is changing and uncertain.
- When one renter vacates a room, you still have numerous others paying rent while you look for a replacement.
If you enjoyed this article on HMO Mortgages you might also like to read about:
- What is a HMO?
- Running a HMO in Liverpool
- Cost of running a holiday let
- Can you get a mortgage with Bad Credit?
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