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HMO Mortgages For Vulnerable Tenants

HMO Mortgages For Vulnerable Tenants

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Providing Homes For Those in Need

If you need finance for a HMO (House in Multiple Occupation) property that will house vulnerable tenants, it can seem like a minefield.  Mainly because it is.

That’s because many lenders in the complex buy to let space won’t lend to landlords like yourself, letting to certain tenant types.  These could be emergency housing, assisting homelessness, addiction recovery or where the tenants require live in care.

The Buy to Let Broker Vulnerable Tenants

However, there is no doubt that we are seeing more of our landlords turn to this type of tenancy for two main reasons, one; to survive the landscape of higher rates and less borrowing power and of course the second is a strong humanitarian pull to assist those in need.  After all, councils and local authorities do not have anywhere near the required level of property to meet demand and so they are forced to turn to the private landlord sector to assist.

So therefore, which lenders will actually accept your application? How can you structure the deal to maximise your investment returns and reduce interest costs?  Well, we’re here to help answer these exact questions for your situation.

What You Should Know…

Given the economic upheaval over recent years, as you well know – the demand for rental properties has only gone one way…UP.

Not only this, the demand for housing for vulnerable tenants in property structures such as HMOs has outstripped market demand further.

However, historically many landlords have steered clear of this type of investment, due to perceived risks associated with this more niche area of the market.

However, for landlords who have embraced the market and those holding a strong history of experience and profitability in the sector, with demonstrable accreditation with the local authority, we should be able to help assist depending on the tenant type.

As we all become socially-conscious of the requirements of vulnerable tenants, lenders are starting to show a conscience in this arena and are now providing flexible solutions and options for these properties, making it a much more viable long term investment with a whole host of unique benefits.

Firstly though, what do we actually mean by ‘vulnerable tenants’?

Every lender has its own criteria, but in general this would include:

People with disabilities that require overnight carers.
Those needing social care via housing associations and charities.
Long term housing contract specifically with a Local Authority.
Ex-offenders, homeless and victims of domestic violence that require temporary housing.
The Buy to Let Broker apartment block

What You Should Consider…

As many high street banks and lenders currently won’t accept applications for HMO buy to lets for vulnerable tenants, it may seem daunting to find the finance you need, but with the right advice and guidance, you could take advantage of the myriad of benefits to this type of investment, such as:

Management packages can be available to simplify the handling of the property, meaning less work for you.
Generally 3-5 year tenancy agreements, providing long term security and medium term removal of rental voids.

We believe landlords play a vital role in supporting the wider community and those in need and this is where we can come in. As specialists in the sector, we have access to a range of lenders that will consider your application and may even offer enhanced rates to suit your needs.

Get in touch today to chat to our team to discover your options and answer any questions you may have. 

Request Your Free Quote Today

Speak to one of our HMO mortgage advisers today to get real insights into your options and the latest available rates. Enter your details here and one of our HMO experts will be in touch shortly.

If you are in a real hurry, you can give us a call on 08009499410
to get your no-obligation free quote.

The Buy to Let Broker Steve, Rachel and Adam

Platinum Trusted Service Feefo Winner 2020, 2021, 2022, 2023 & 2024 ⭑⭑⭑⭑⭑

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We’d strongly recommend that you take professional property tax advice prior to entering into any buy to let ventures.

Just like your home, your buy-to-let property may be repossessed if you do not keep up payments on your mortgage.

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