Cardiff Council introduced Additional Licensing for rental properties in Cathays from the 1/7/2010.
This will affect all properties that are from 2 bed / 3 let. Their aim is to raise the standard of the properties and landlords. The fee is £600 per property and normally takes 8 weeks to approve.
The unintended consequence of this additional license is the reduction in the number of Buy to Let mortgages available. As soon as HMO is mentioned most lenders decline even though the property maybe a 2 bed with 3 tenants.
BM Solutions will lend on HMO but only to professionals. Post Office decline. Coventry decline, Accord decline, Northern Rock decline, Natwest decline, Halifax decline, C&G decline.
The following will lend at present. Leeds BS / Monmouthshire BS / Paragon / The Mortgage Works / Kent Reliance / Yorkshire Bank.
Deposits are from 20%
The lending criteria can change at any time, please contact me for the most up to date criteria.
On the plus side, when I have dealt with HMO department (tel 02920 871 762) they have always been very helpful.
How Much Will It Cost Me For Your Advice?
A fee of £495 is payable on completion of the mortgage and Neil Soundy Financial Services Ltd will keep the commission received from the lender for arranging the mortgage.
Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.
The Financial Conduct Authority does not regulate some forms of buy-to-lets.
We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.
Think carefully before securing other debts against your home/property. Your home/property may be repossessed if you do not keep up repayments on your mortgage.