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HMO Mortgages (Houses of Multiple Occupancy)

Date: Tue, 18 Oct 2005

Houses of Multiple Occupancy are defined as those properties that end up generating high levels of rental return for buy to let purposes.

Such properties were historically paid for using commercial mortgages for which lenders in such a market would require a large deposit to be paid usually in the magnitude of around 30% of the properties value.

Nowadays the vast majority of lenders would consider Homes of Multiple Occupancy more a residential rather than a commercial property meaning that a whole new lease of life has been given to the buy-to-let mortgage market.

An example of a property that would come under this category would be that of a student house. It can be that under such a circumstance that there are a number of lenders in the marketplace that would deem such a scenario unacceptable for such a mortgage due to such factors as the fact that the members living in the house are not of the same family, whether or not smoke alarms are maintained rigorously or what level of kitchen facilities are available within the property.

Therefore specialist assistance should be sought with regard to arranging HMO mortgages to make sure that the deal that is agreed is the best for all parties involved.

HMO Mortgages from Endsleigh Financial

If you are currently interested in the benefits of arranging a House of Multiple Occupancy mortgage or simply want to discuss your situation further please click here and fill in our short mortgage quote form.

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