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About 2 weeks ago 36
Most buy to let lenders will either restrict the maximum borrowing on Houses of Multiple Occupancy (HMO’s) or in most instances, you will find that it falls completely outside of their criteria and they will not lend at all. The options are even more constrained should the HMO actually be a registered as such with the local authority.
Good news is at hand however for owners of these types of premises. In recent weeks I have managed to refinance three such properties for two Property118 readers who have replied to my previous articles. I have found a lender willing to lend on HMO’s (even if registered) at up to 85% loan to value. The rates and fees are competitive; 5.99% variable with a 2.5% arrangement fee for up to 85% LTV or 4.39% variable, 2 year discount, 3% arrangement fee at up to 75%. These products can also be used for multiple apartments held on one freehold title.
The criteria is pretty simple and easy to work with too and despite there being a requirement to have an earned income of some sort, there is no minimum income requirement. A maximum of 8 bedrooms is allowable.
If you have an HMO or are thinking of buying one and would like to discuss your options then I would be pleased to hear from you.
— Mark Alexander (@iAmALandlord) June 1, 2014