Duncan Kane

Registered with Property118.com
Thursday 7th November 2013

Latest Comments

Total Number of Property118 Comments: 2

Duncan Kane

19:36 PM, 7th November 2013
About 7 years ago

HMO Internal locks 'deal breaker'?

Ok, again thanks for all the recent comments on this.

I will indeed speak to the broker who found this mortgage before going ahead. I understand your reservations about it being a buy to let (and not an HMO) product, and yes this particular mortgage was recommended to me because of the no minimum income and low evidence requirements, I believe BM offers the only mortgage like that.

However, the broker DID initially ask me for proof that the house is an HMO, I sent him the sales details which clearly states it at the top, I also referred him to the Rightmove ad which says 'HMO licensed property' in the title! so there was never any doubt about it. He also spoke directly to BM solutions to clarify we could have 5 unrelated students living there - this was after a mix up in their offer saying no students, this has now been accepted by BM in writing.

So I'm not sure this is as black and white as it appears, the broker seemed very thorough and consulted BM solutions throughout the process. The mortgage offer itself does mention 'House with multiple ocuupiers' in one of the clauses, and the conveyancing itself is being done through BM conveyancing, wouldn't they have flagged up a problem like this by now?

Anyway as suggested I need to clarify this first with the broker tomorrow.

I really appreciate all your advice on this, it's a big help.... Read More

Duncan Kane

15:26 PM, 7th November 2013
About 7 years ago

HMO Internal locks 'deal breaker'?

Thanks for your replies.

Brian, the condition on the mortgage offer simply says 'no internal door locks' and doesn't specify what kind, if any, are acceptable, presumably they mean none at all. At the moment each bedroom has thumb turn locks which the tenants are reluctant to remove.

Jamie, I know this seems the simplest solution but I'm worried they may send another surveyor round before completion to check the locks situation. When they did the valuation survey he knocked on the door a few days earlier than booked and the students just let him in! So could easily do that again.

Yvette, the BM mortgage was applied for through a broker, the house was already an HMO licensed student house so they knew from the beginning. It does seem though that this is a general BM buy-to-let mortgage and not an HMO specific one, so as you say, the locks thing is a standard term in that contract.

Do you think they're offering the wrong type of mortgage then? The broker said this was the only option available for me so don't think it can be changed. Or am I worrying too much about this and should just go ahead with exchange and tell them there are no internal locks like Jamie says? The valuation surveyor didn't seem to notice there were any locks there anyway. I just don't want to lose that deposit.

Any more advice most welcome!... Read More