June 26, 2017

HMO Mortgages

HMO stands for House Of Multiple Occupation, this is described under Sections 254 And 257 of the Housing Act 2004. The building can be classed as an HMO if it is:-

  • A house split into bedsits
  • A house or flat share where each tenant has their own tenancy agreement
  • Students living in shared accommodation
  • DSS tenants sharing one property on separate tenancy agreements

Empire Commercial Finance can help you with the funding to fund such a project. Not all Banks lend their money on such projects, however we have a number of different High Street Banks and Specialist Lenders we can introduce you to and who will be happy to assist you with your new project.

Normal Documents a Lender would like to see to assess an application include:-

  • Property Portfolio, to include Addresses of Properties, Current Value, Outstanding Out Standing Debts-
  • 3 months Personal & 3 Months Rental Bank Statements-
  • Lenders Application Form-
  • Income & Expenditure Document-
  • Last 3 years accounts or tax returns/SA 302 document-

A Typical Deal for an HMO Mortgage might be something like:-

  • 75% Loan to Value (LTV)
  • Rates from 2.9% + Base Rate. (maybe cheaper for experienced Landlords)
  • No Early Repayment Charge-
  • Set Up Fees added to the Mortgage, subject to LTV

Speak to a Commercial Mortgage Specialist

Some of our lending partners

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