Our HMO Mortgage Service - helping you make the right decision
"The essence of the Fair Mortgages service is professional independent mortgage and protection advice brought to you by a team of specialist advisers and experienced administration support.
As your mortgage is such an important transaction, good advice is imperative.
HMO or Houses in Multiple Occupancy refer to properties that have a number of individuals living together who share communal facilities, such as bathrooms and kitchens, HMO generally refers to properties where the residents are not related to one another such as is commonly the case with house shares or student properties. Properties are generally not considered HMOs when they are inhabited by a single household.
A HMO mortgage may either refer to instances where a group of friends opt to purchase a house together and share the costs. Or to cases where someone may want a buy to let mortgage to purchase a property that will be let on a HMO basis such as a house share with either a single Assured Shorthold Tenancy agreement or multiple.
Residential mortgage for HMO
If you are looking to purchase a property with one or more friends, you may need what is known as a mortgage with ‘tenancy in common’. Unlike with a joint tenancy mortgage, the holders of a tenancy in common are not treated as a single household. This means that while you can each own a different share of the property rather than an automatic 50/50 division of ownership.
Buy to let HMO
If you want to purchase a property and let it out to multiple tenants who are not in the same household then you may need a mortgage which permits HMO. When renting out a property as an HMO, you may need to contact your council to apply for a specific HMO licence, you will generally need a licence if any of the following apply;
The property will be rented out to 5 or more people who form more than one household, is at least three stories high or the tenants will share a toilet, bathroom or kitchen. Some councils may require landlords to obtain a licence even if their property is smaller or rented to less people than this.
Finding an HMO Mortgage
Whether you are interested in obtaining a residential or buy to let mortgage for a property that is or will be in multiple occupation it could be wise to first seek the service of an independent mortgage adviser.
Mortgage advisers which offer a whole-of-market service can use their professional knowledge of the industry to search across providers and try to find you the most appropriate mortgage products for your specific needs, whether you are looking to be a landlord or homebuyer.
To find out if Fair Mortgage’s services could help you fill in our online contact form to request a call-back at a time that suits you for a free initial consultation. Alternatively you can call directly on: 0117 313 7780