If you have been surfing the net or talking to brokers you are probably acutely aware that buying Houses In Multiple Occupation (HMO property) as a first time buyer is very challenging.
The traditional method is by way of bridging finance but even then the lenders are few and far between for HMO first time buyers.
The good news is we have an attractive rate lead solution for HMO first time buyers that does not evolve expensive bridging finance which typically retails at 1.4% to 1.6% per calendar month.
Full details on our HMO product below:
HMO First Time Buyer Rates
Rates start from 7.99% with a further 2%pa which is payable on redemption or as flat 9.99% rate per annum. Experienced landlords are currently being charged rates of about 5.5% to 6.5%. So the key is to serve your first time buyer apprenticeship on this product and move onto even more profitable ventures.
Loan to Value
Maximum of 60% loan to value. Just so we’re clear you will need to have 40% deposit to access the scheme. The reason for this size of deposit is lenders view first-time buyer landlords as a greater risk and therefore they want the reassurance that you are fully committed to the project.
Minimum property value
Minimum loan amount for this type of property is £200,000
Loan Sizes
Minimum £50k and borrowing can go up to £100 million if needed so there is certainly no shortage of funds as long as it’s based on sound business proposition.
More Information
| Fixed Term | 3 years |
| Max LTV | Up to 60% |
| Min Loan | £50,00 |
To find out more about HMO Mortgages or Bridging Finance, please call us on 020 7993 2044 or alternatively complete the simple enquiry form on the top right hand side of this page.
Payam Azadi is a partner at Niche Advice Ltd who are Independent Financial and Mortgage Advisers in London.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines.
