HMO mortgages out of favour?Make Text Bigger
I’m nearing the end of my 20 year term with Paragon on an HMO. They would only speak to me within the last 3 months of the term and have now said I can apply for an increase in term of up to 10 years. When I saw their rates I was surprised how high they are – eg 3.65% for a 2-year fix with a 0.5% fee; or 4.0% for a 5-year fix with a 1.0% fee both at a maximum of 75% LTV.
I asked my IFA to come up with something better and they’ve come back and said I should try and get the Paragon extended term, as the market rates are so high. Other companies will lend but the arrangement fees are huge.
This is a dramatic increase to the rates from not-so-long ago. Last December I remortgaged an HMO with The Mortgage Works at base + 1.69% with a £1,995 fee. Now TMW have no HMO rates on offer.
I guess the reason must be the perceived Covid-19 risk of several “households” under one roof.
Is anyone else having trouble or can anyone else find anything better?
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