Houses in Multiple Occupancy HMO
Looking at mortgages for a HMO can be a minefield, as you will need to have a good understanding of not only mortgage products but also the relevant regulations and rules depending on the type of HMO and your location. If you are looking at the plausibility of purchasing a potential HMO or remortgaging an existing property we would be delighted to discuss the options available to you.
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What is classed as a HMO?
Your property might be classed as a HMO if a minimum of three tenants live there who are from more than one household and the toilet, bathroom or kitchen facilities are shared. A household consists of a single person, members of the same family who live together, people who are married and living together. (Please refer to the gov.uk site for the latest information)
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There are additional checks that need to be completed if the above applies to you. If you want to rent out your property as a HMO in England or Wales you must contact your council to check if you need a licence. Each individual council has different approaches to licencing and so it is important for the appropriate checks to be completed.
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If you would like to discuss this further with an expert adviser please do not hesitate to contact us to discuss how we could help you.
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​THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE SOME FORMS OF BUY TO LETS. YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH THE REPAYMENTS ON YOUR MORTGAGE.
Have you checked your credit rating?
As part of a mortgage application lenders will typically review your credit profile to see if you meet their requirements. We recommend independently checking your credit report as early as possible so that we can be fully informed when considering the most appropriate lender.
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Follow the link below to be taken to checkmyfile where you can review your credit report or click read more to get more information