HMO Mortgages Requirements and Criteria
The HMO Mortgage Requirements and HMO Mortgage Criteria, vary from one HMO lender to another. What’s important is to make sure that before a lender is approached, the borrowers’ situation and experience is suitably and completely understood.
This means that the correct lenders can be identified and communicated with early, which ensures a smooth and successful transaction.
Certain HMO lenders will want to see a minimum of 2 years of experience specifically as an HMO landlord. Other lenders do not require any HMO landlord experience at all.
To find the most suitable potential HMO mortgage lenders and rates and fit the client to fit particular HMO mortgage criteria, a great broker will need to fully understand the following;
- BTL Landlord experience of the borrower(s)
- HMO Landlord experience of the borrower(s).
- Current Income level of the borrower(s).
- Credit Rating of the borrower(s).
- Some basic information about the proposed HMO property, including but not limited to;
- the number of bedrooms,
- the tenant type,
- the property address (if a property has already been selected),
- if there is a HMO licence in place already.
- The borrowing vehicle, whether that be a personal or individual name, in a Limited Company (LTD), Special Purpose Vehicle (LTD SPV) or a Limited Liability Partnership (LLP).
- The source of the deposit, if a purchase and not an HMO remortgage.
What is important is fully understanding any borrowers full situation and then opening up the lenders and products that are suitable for the specific scenario to allow a smooth and efficient process to occur.
To find out more about HMO mortgages make sure you check out our Ultimate Guide to HMO Mortgages
Alternatively, contact us directly to see which lenders you fit the criteria for using the contact form below.
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