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Let Green & Green help you with your HMO
HMO (House of Multiple Occupation) Mortgages
Investing in a House of Multiple Occupation (HMO) can be a great way to boost your rental income. It can give you more flexibility than a standard buy-to-let property.
But finding the right mortgage can be tricky. HMO mortgages have a different set of rules and regulations compared to buy to let mortgages.
That’s where we come in. We’re used to dealing with HMO mortgages. We know all the ins and outs and differences from other mortgages, and it’s our job to help you get the mortgage you need.
So, whether you’re new to HMO mortgages or you’re expanding an existing portfolio, we can give you clear, simple expert advice to help you get the best mortgage rates and terms.
What is an HMO mortgage?
An HMO mortgage is one that’s specifically designed for properties where you rent to three or more different people, each with their own rental agreement.
Properties like this can make more money than standard buy-to-let houses, which is a big plus point for investors.
They also have more complex, stricter rules and need a bigger deposit. Plus, lenders will want to know more about your finances and plans, how much you expect the property to make and what landlord experience you have.
Lenders will also want details on what you’re going to be charging for rent, if any tenants are in place already, what your plans are if it’s vacant for a while and how you’ll cover maintenance costs. They might have requirements on the property’s size and location, too.
*Your home may be repossessed if you do not keep up repayments on your mortgage*
How can Green & Green find the best HMO mortgage for me?
We start by having a proper sit-down chat with you. We’ll be asking the same kind of questions lenders will ask, so you’ll need some figures to hand.
Then, we’ll do what we’re best at - put the legwork in and find some mortgage options that we think will suit you. We have access to a good range of lenders, including some that specialise in HMO mortgages, so we should be able to find something that suits.
We’ll present you with a few options, and we’ll tell you the pros and cons of each, so you can make an informed decision as to which suits your plans best.
Once you’ve picked the right deal for you, we’ll take care of the legwork by dealing with your lender and making sure all the paperwork is filled in and submitted in good time.
We’ll do our best to make the whole process as smooth as possible so you can focus on finding the best property for your money.
Why choose Green & Green?
Getting a HMO mortgage is a lot more complicated than a standard buy-to-let mortgage. There are much stricter, more complex rules and regulations to deal with.
So, you need an advisor that knows the market. Like Green & Green.
We’ve worked with a long list of happy clients to get them the best HMO mortgage deals.
First, we’ll sit down with you and have a proper chat about how you’re doing financially, and what your HMO plans are. We’ll need to go in-depth here, because lenders will do the same thing.
Then, we’ll work with our panel of lenders to find the best deals for you. Because we’re independent, we have access to plenty of different options, so we should be able to find something close to what you need.
We’ll present you with a few different options, and we’ll explain the pros and cons of each. Chances are there won’t be a perfect fit for what you want - you may have to make some compromises.
And we’ll help you all through the process, from filling in and submitting the paperwork to dealing with your lender. We’ll keep you updated every step of the way and if you need anything we’re only a phone call away.
Don’t take our word for it
Have a read of what some of our clients have to say about us.
Highly recommend
An extremely smooth process from start to finish (which we did not have in previous years when sorting our mortgage) he always goes above and beyond to ensure a fast and efficient service. James is really helpful, approachable and an absolute professional, ensuring things are done in the most cost effective way to suit your needs. Very very pleased and will definitely be using him again for future advice.
George Lawler
I could not find the words to express how fantastic James has been.
We've had very difficult and stressful circumstances James has worked tirelessly to get us the best deal in record time. Contact has been professional and informative and James has reassured us at many stressful points along the way. I will definitely be recommending Green and Green and will use again.
Jenny Palmer
Ready to get started?
An HMO property can be a great investment - but it’s super important to get the right mortgage. So, if you want some expert advice, book a free, no-obligation meeting now and we’ll have a chat about your plans.
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Frequently asked questions about HMO mortgages
What deposit is needed for an HMO mortgage?
You typically need a deposit of 25-30% of the property value for an HMO mortgage. This can vary depending on the lender and your personal circumstances.
Can I get an HMO mortgage if I’m a first-time landlord?
It’s not impossible. While some lenders prefer landlords with experience, there are lenders willing to work with first-time HMO investors. We can help find the right option for you.
What regulations apply to HMO properties?
HMO properties need to meet specific licensing and safety standards, which can vary by location. This might include fire safety requirements and minimum room sizes. Make sure to check with your local council for specific regulations.
How do lenders evaluate rental income for HMO mortgages?
Lenders generally require that the rental income covers the mortgage payments by a certain margin, often around 125-145%. They also consider maintenance costs and periods when the property might be vacant.