HMO Mortgages
HMO Mortgages - or houses of multiple occupancy are a specialist area within Capital Fortune. We have deemed HMO properties a bespoke area of mortgage lending given most lenders are not prepared to offer mortgages or loans against them. However, these mortgages can be arranged given the number of lenders in the market still interested in this type of mortgage business.
HMO Mortgage Schemes
Information on three HMO mortgage schemes is given below as a general guide. Rates and terms are indicative and dependant on circumstances - please call for details.
Scheme 1
Rate: 4.5% plus base rate tracker
Lenders Arrangement Fee: 1.75%
Maximum Loan to Value: 70%
Repayment Type: Capital and Interest or Interest Only
Scheme 2
Rate: 4.11% plus base rate tracker
Lenders Arrangement Fee: 1.5%
Maximum Loan to Value: 70%
Repayment Type: Capital and Interest
Lenders historically have generally sought to avoid lending against a HMO and have deemed them high risk lending given the number of tenants occupying the one property and more often than not under separate tenancy agreements.
The use of shared kitchen and bathroom facilities make HMO mortgages a complex area but this form of City living is extremely popular and a number of HMO’s are well positioned, often near the high street and are accessible to all amenities and transport links. HMO flats and accommodation can make ideal homes and can provide a good investment.
We are able to place these properties with UK mortgage lenders but often these types of application require a significant degree of negotiation with the lenders and the valuers.
That is where are expertise is essential. We know our lender’s criteria and we will get to know the local valuer. We will speak to the valuer prior to any application to ascertain whether the actual property meets the lender’s specific criteria, this will save you and us, both time and money.
At Capital Fortune, we work with a number of lenders willing to mortgage HMO premises and who offer competitive mortgages on these properties.
For assistance on our HMO mortgages, call us today on 0845 3 630 430 or Enquire Online.
