Buy To Let Mortgages HMO With 10 Bedrooms
Why use Fair Mortgages
Fair Mortgages can provide a first class service, if you are looking for a buy to let mortgage broker service.
Special features of what we offer include:
- Rental Income Requirements - What lenders now require on rental income - we can help you secure a buy to let mortgage for an HMO with 10 bedrooms and get you through the lender criteria maze
- Whole of Market Buy to Let Broker - We deal with most UK buy to let lenders that are prepared to provide mortgages to landlords including private banks, specialist lenders and wealth managers
- Buy to Let Rates – Access to leading buy to let market rates
- Exclusives - Access to exclusive buy to let mortgage deals not available on the high street
- Our BTL Expertise – Expert help for HMO landlords
- Credit Issues? - We have lenders who will take into account previous defaults and missed payments if applicable
What is an HMO?
Any property that is rented out by three or more people, who are not a part of the same household but share common areas such as a kitchen, is a house of multiple occupations (HMO). An example of an HMO is a shared student house.
HMO with 10 bedrooms
A landlord with an HMO property that has 10 bedrooms will need a licence from their local council. This is because any property with five or more tenants, who are not from the same household, is classified as a ‘large HMO’. It is an offence to have a large HMO without a licence granted from your local council.
Buy to Let Mortgage Under New Regulations
The Bank of England’s Prudential Regulation Authority imposed new regulations that changed the way traditional lenders consider buy to let mortgage applications.
Traditional lenders will consider the following when assessing a buy to let mortgage application:
Review of Portfolio - Traditional lenders will now review a landlord’s entire portfolio as a part of the application process and if the traditional lender finds that an HMO landlord has a property that does not provide a positive return, then the application for their buy to let mortgage will likely be unsuccessful.
Rental Coverage Ratio - Generally, landlords will need a rental coverage ratio of up to 170% for HMOs. It should be noted that traditional lenders will only accept rental coverage ratios based on a professional valuation from a surveyor.
Income Stress Test - Traditional lenders will implement a strict income stress test, which will require landlords to be able to demonstrate that they can afford mortgage repayments in the event that the interest rate increases to 5.5%.
Buy to Let Mortgages for Licensed HMOs with 10 Bedrooms
Securing finance for a large HMO is generally more expensive than smaller HMOs or standard buy to lets.
Along with the new regulations, typically lenders will only provide buy to let mortgages for HMOs to landlords with a strong portfolio and experience in the buy to let market.
However, if you need a buy to let mortgage for an HMO with 10 bedrooms it is still possible to secure the finance you need. There are some lenders that do not see inexperience as a barrier to finance, which is why it is beneficial to contact a specialist mortgage broker with access to specialist lenders to find the best mortgage for your set of circumstances.
If you are an HMO landlord and you need a buy to let mortgage, you may benefit from our services.
At Fair Mortgages, we have a wealth of experience in assisting landlords with large HMOs in getting the finance they need. We have strong relationships with traditional lenders, private banks, wealth managers and specialist lenders; which means we have access to buy to let mortgage deals that are not available to the general public.
Fair Mortgages may be able to help you. Fill in the online contact form on this website to request a call back from one of our advisers and receive a free initial consultation. Alternatively, you can call us directly on 0117 403 4474