We can get you a mortgage can help you find the most suitable mortgage options for you, whether you have put an offer in on a single-occupant property or a House in Multiple Occupation (HMO).
HMO properties involve a number of tenants living together while sharing communal facilities and, as several residents are occupying one space, they can prove very profitable to landlords
You may be able to take home a considerable rental income every month from multiple tenants living in just one property, so it’s not hard to see why many investors see this as a lucrative option.
At We can get you a mortgage, we offer a wide range of buy-to-let mortgages, including a good selection of products that will suit HMO investments.
Things to consider with HMO properties
While renting out one property to several occupants can look like a very profitable investment, as you can multiply your rental income by the number of residents living in the property, there are many things to consider first.
As well as finding a suitable buy to let mortgage and securing finance, landlords may need to obtain an HMO licence for these types of homes if they plan to let to more than three residents.
If the tenants share bathroom or kitchen facilities, a licence may not be compulsory. However, landlords with properties that are more than three storeys tall and have over five tenants residing in the home are obliged to take out the licence.
You can apply to your local council for the HMO licence, with the document lasting five years before needing to be renewed.
If you already have a mortgage, you will need to tell your existing lender. Otherwise, it is important that you include this in the information you give to the buy-to-let lender when arranging a mortgage with us.
Remember, there are rules to abide by to retain your HMO licence, such as producing annual gas safety certificates, installing smoke alarms, ensuring electrical equipment and furniture is safe to use and providing tenants with a document detailing the terms of living in the property.
What lenders may consider with HMOs
We can provide you a wide range of buy-to-let mortgage quotes so you can choose which one is most reasonable for you and will enable you to afford monthly payments while still receiving a profit from your rental income.
When considering your mortgage application, lenders may look carefully at your plans for the property to become an HMO. While this shouldn’t affect the value of the property or the monthly payments, they might wish to assess the risk involved in you letting the house to more than one resident.
As several people live in one space, there is a greater chance that damage could be caused to the residence, which means the lender may face more risk when providing you with finance to pay for it.
However, when you are comparing buy-to-let mortgage quotes, you can find ones to suit you and your needs, so you can feel confident in the conditions offered by your chosen mortgage lender.
Use We can Get You A Mortgage to help with your HMO purchase
At WeCanGetYouAMortgage, our team is trained to provide you with guidance on how to locate the best financial options for you, from sourcing buy-to-let mortgage quotes for your property.
We are on hand to answer any questions you may have and you can depend on our experience and expertise when making your choice.