HMO Mortgages

HMOs mortgages

A HMO is a (House in Multiple Occupation). You might think of these as a block of flats, essentially it is one or more of one property on the same free hold title. An example of this is when landlords let rooms out to multiple university students or young professionals typically in urban areas. HMO’s have a minimum of 3 tenants that share a kitchen/bathroom. These do not count as family or one as a group; these would be completely separate tenants. These separate tenants all have different tenancy agreements and all have short hold agreements and can come and go separately. 

Is HMO’s a good investment?

Investing in HMOs can be very profitable compared to single let households. Returns tend to be around ⅓ higher than buy to let properties making it a great option for investors, although there are still some challenges they may face. Short term tenants are usually less committed and caring therefore they take less care of the property which may create more refurbishment costs. But if you are in these urban areas with these high demands it can be great as you can receive these high returns and have less trouble filling your gaps in tenancy making it a great investment. 

How can we help?

It is very important to make sure you speak to one of our experienced HMO mortgage broker to ensure this is something you are able to do.

Your home may be repossessed if you do not keep up repayments on your mortgage.