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|Fleet Mortgages produces guide to HMOs|
|Tuesday, 31 May 2016|
Fleet Mortgages, the buy-to-let and specialist lender, has today launched a new Guide to Houses in Multiple Occupation (HMO) for advisers and their clients.
The Guide covers off a range of relevant questions on the HMO sector, and how it differs from standard buy-to-lets. Within the Guide it defines exactly what a HMO is, where a HMO licence is required, the advantages/disadvantages of investing in such properties, how a standard buy-to-let property can be converted to a HMO, and how Fleet Mortgages underwrites a HMO case.
Fleet Mortgages has a competitive range of products specifically designed for HMOs with up to six bedrooms.
These properties are assessed for rental on a room by room basis, and property value on a comparable evidence basis.
Products available for HMO properties include:
· 65% LTV: a two-year fixed rate at 3.99% and a lifetime tracker at 4.09% - both with a 2% fee.
· 75% LTV: a two-year fixed rate at 4.19%, a five-year fixed rate at 4.99%, and a lifetime tracker at 4.59% - all with a 2% fee.
Bob Young, Chief Executive Officer of Fleet Mortgages, commented: “As the ‘go to’ lender for professional landlords we are always looking to develop the resources we offer to advisers. Our goal is to help them and in turn, their clients, understand a particular section of the marketplace and Fleet Mortgages’ offering within it. This is why we have produced our HMO Guide to help them understand what constitutes a HMO property, how it differs to shared properties, for example, and to answer some FAQs around this section of the buy-to-let market. “HMOs are becoming an increasingly popular option for investors. Higher rental yields are achievable and mortgages for such properties more accessible in today’s market. It is therefore important for clients to understand the advantages, disadvantages and responsibilities associated with letting HMOs before making any decisions to purchase or convert a property.”
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