HMO lenders typically charge a higher rate as it perceived as higher risk lending. However, not all brokers are aware that BM Solutions (the Buy-to-Let arm of the Lloyds Banking Group) will lend on HMO (Houses of Multiple Occupancy) properties at standard buy to let rates. This is available on purchase and remortgage of HMO properties owned in your personal name.
We have successfully been funding mortgages on purchase and remortgage (including capital raising) on Licensed HMO properties with BM Solutions for quite some time. The benefit of this route is that it provides lower rates and lower arrangement fees compared to a standard HMO mortgage product.
Example of current remortgage rates (01/10/2019)
1.96% two years fixed
- 75% loan to value
- £999 lenders fee added
- free valuation
- free legals
2.29% five years fixed
- 75% loan to value
- £999 lenders fee added
- free valuation
- free legals
Other rate options are available.
Criteria
To access these rates you have to match the following criteria:
- Maximum of 5 unrelated tenants
- The property must be suitable for standard residential occupation
- Maximum of 5 lettable rooms
- A single Assured Shorthold Tenancy covering all tenants
- Corporate/company let acceptable
- Maximum tenancy of 12 months
The mortgage market is constantly changing. Contact me to discuss your circumstances.
Contact us for the current rates and a Free Consultation
Why Use Neil Soundy Financial Services For Your Mortgage Advice?
- We are experts in complex lending
- We are experts in SPV/Ltd Co lending
- Your initial consultation is free with no obligation
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.
