First Time HMO Mortgages
⭑⭑⭑⭑⭑ 5-Star Award-Winning Mortgage Advice
HMO Rates From 2.13%*
If you’re an entrepreneurial homeowner with no landlord letting experience looking to secure an HMO mortgage, our expert advice can help you invest with confidence.
Use our specialist mortgage advice and decades of experience with HMOs of all shapes and sizes to discover some fantastic rates including some not available on the high street.
Start Your Property Portfolio On The Right Financial Footing
If you aren’t currently a landlord and don’t have any previous landlord experience, the HMO mortgage market can be tough to break into. You may have found that many HMO lenders require you to have a certain period of ‘landlord experience’ to qualify to borrow, this can be anything from 6 months to 3 years. BUT…
With expert advice, not having the experience doesn’t have to be a barrier and you can secure some great deals to get you started as a landlord buying HMO property. We are also sometimes able to ‘break the rules’, by gaining exceptions from specialist lenders for strong cases where the minimum threshold isn’t reached, but lenders are happy to lend.
No matter how complex your needs, our expert mortgage advisors will be able to discuss all options available to you to find the right one for your first investment.
What An HMO Mortgage Can Do For You?
There are lots of benefits to choosing an HMO (house of multiple occupancies) as opposed to a traditional Buy to Let for your first investment and here are some of them:
- You can secure greater rental yields with multiple tenants.
- You can be considered for larger Suis-Generis properties.
- You can rent the property out to vary of sectors – students, professionals, Corporate lets and more
- You can secure up to 80% LTV for first-time landlords.
- You can accept individual or shared tenancies.
- Guaranteed rental schemes allowable.
- You can reduce your void risk by letting per room.
As with all Buy to Let properties, we highly recommend that you seek tax advice as well to ensure that all of your finances are in order.
Why Use A Mortgage Broker?
Using a mortgage expert can always be beneficial but this is especially true when it comes to your first investment. By picking up the phone and calling us today:
- You’ll get the latest mortgage advice from a qualified expert with specialist knowledge of the HMO market.
- You’ll be able to compare thousands of deals on the market in one go.
- No automated responses – you’ll be able to discuss all of your questions with a human that understands your unique needs.
- You’ll get access to all of our HMO lender contacts.
- You’ll get advice based on the true total cost, taking into account all payments and all fees, not just the initial rate, so there are no nasty surprises.
- You’ll get access to exclusive plus semi-exclusive deals, not available from the high street banks.
- You’ll get access to the key decision-makers for your application – dedicated underwriters & credit managers.
- Your credit rating is safe with us, as no credit checks are needed to get your free quote.
- You’ll get as much time as you need to consider quotes – no pressure.
First Time HMO Landlord – the detail
Many more properties have fallen under the remit of a licenced HMO, this is down to the HMO definitions being more broadly defined than ever before – and therefore there is much more rental stock out there under the ‘HMO’ banner.
The HMO mortgage market generally sits away from the usual vanilla buy to let space (there are one or two notable exceptions to this) but more often than not, a specialist lending for Licenced HMOs is needed.
Of course, if you’re looking at purchasing an existing HMO, knowing how and where to get the best possible mortgage products with a lender that allows a licenced HMO to your requirements is an absolute must, even more so where you aren’t an existing landlord…
Today, an HMO is essentially a single dwelling which is rented to 5 or more people from at least 2 separate households sharing certain rooms ie bathroom or kitchen. Nowadays, properties fitting this more simplistic definition will need a licence. It’s really important to note that planning permission could also be needed for the area they are located in too. Councils can and often do utilise Article 4 to restrict or control HMO numbers in certain areas.
HMO mortgage transactions are common here at The Buy to Let Broker, we deal with every lender in this area and have our own specified underwriters and senior contacts at these lenders. This is simply because we produce a large volume of well presented, quality business, therefore lenders want to ensure we have high service levels, which in turn helps our clients.
We’ll generally ask you questions such as the below in order to ascertain where we can obtain the best funding for you;
How many bedrooms does the property have? What is the tenancy structure? Tenant type? How many is it licenced for? Does it require planning permission? We’ll also ask you some basic questions on your own situation and preferences.
We can then manage expectations much more easily as to the products available for first-time landlord HMO borrowers such as yourself – we like to give the highest degree of certainty we possibly can and as early as we can, this reduces the chances of any disappointment throughout the process.
We’re constantly keeping on top of criteria as we’re consistently advising on and processing first time HMO transactions
We can certainly help with all types of property legislation including Article 4 and larger Suis-Generis HMOs.
Start Your Living Your Best Landlord Life
Your first HMO mortgage deserves to be a great one and that is where we can help. Give us a call on 08009499410 or fill in your info below and one of the team will give you a call back.
We’d strongly recommend that you take professional property tax advice prior to entering into any buy to let ventures.
Rate correct as of 06/05/22 – please be aware rates can vary and terms and conditions can apply. This particular rate is based on a loan of £500,000 at 60% LTV and is a 2-Year Fixed Interest Only. APRC 4.8%.