Published 21 September 2012 · Last reviewed 6 April 2013 · Older article — see current rates

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

Payam Azadi is a partner at Niche Advice Ltd who are Independent Financial and Mortgage Advisers in London.