HMO Remortgage Guide
We can compare an HMO Product Transfer and HMO Remortgage for you to maximise your rental yield when you compare from some of the leading HMO mortgage providers in the UK with our nationwide mortgage specialists. Obtaining the best LTD Company HMO Mortgage for your circumstances. Only a minority of Mortgage Lenders offer HMO Remortgages, a smaller minority offers Limited Company HMO Mortgages. Add in the rules around landlord finance from unusual properties, rental stress tests and more so for portfolio landlords. Then your personal circumstances can limit options from minimum income, credit score and experience. A sensible property investor will seek advice from a specialist in HMO Mortgage Finance. If you are looking to release equity from your HMO by remortgaging our advisers can look at Further Advance (from the current lender) and compare it to a remortgage, to get the best product for your circumstances.
What equity is needed?
The minimum HMO Mortgage equity is 15% of the property value (85% LTV). The rental amount can limit the maximum loan achievable, requiring higher equity. Landlords with more substantial deposits can enjoy better HMO Mortgage products and rates.
What are the best HMO Remortgage Rates?
The HMO Mortgage market is in constant flux with lots of competition. This means rates vary from time to time within the Loan-to-value (LTV) ranges. If you have a small HMO a minority of lenders may allow you to mortgage on standard buy-to-let rates, large HMOs may require commercial rates. Given these complexities - it's always best to talk to a specialist HMO Mortgage adviser to find the best mortgage for your needs and circumstances.
What is an HMO remortgage?
If you intend to remortgage a property to rent it out to more than one household, you require a House of Multiple Occupancy (HMO) Mortgage. Your standard Buy to Let Mortgage contract often limits the number of households that can live in a property and limits tenants to having just one tenancy. An HMO mortgage is a different contract with a mortgage lender. These contracts allow you to have multiple households and each of them to have their individual tenancy (if required). If your property does not require an HMO License, you can benefit from traditional Buy-to-Let rates in certain circumstances. Available from a select few mortgage lenders. If your property requires an HMO License you will need an HMO Mortgage. You will often remortgage your HMO for one of two reasons: To obtain a better mortgage rate. To release equity by increasing borrowing.