Get Help With HMO Licenses
If you want to become an HMO landlord, then you may have to apply to the local authority for a license. If the property that you want to rent out has more than three bedrooms or more than five people occupy it, then you have to register it with the local authority, under current rules.
It’s essential to have a license in place before you apply for a mortgage, although some lenders may proceed with proof you have applied for a license. Some lenders will refuse to provide a loan if they can’t see evidence you’re able to rent out the property to multiple people.
Find Affordable HMO Mortgages
Because of the perceived increased risk of lending on the HMO market, many mortgage lenders charge a higher rate than the standard mortgage market. Paying more interest naturally makes HMO mortgages more expensive.
Furthermore, you often have to put down a bigger deposit. Most lenders offer a maximum loan-to-value rate of between 65 and 75 per cent meaning that they will only provide you with a maximum of 75 per cent of the value of the property in the form of a mortgage – the other 25 per cent, you’ll need to pay yourself.
At Ascot Mortgages, we specialise in helping people find the right HMO mortgage for what they want to achieve.