mortgage for HMO

[Steve C]

Is there anybody who can point me in the direction of either a mortgage provider or broker who can come up with a mortgage for a particular house that I have seen.

House was originally a 3 up 2 down which has now been converted to a 5 bed with shared kitchen and bathroom. Each room is presently let on an individual AST, (professional tenants, no benefit). Each room has a fire door with its own yale lock.

House cost approx £155k and mortgage required as high as possible, but I do have large pot available, although I would prefer to use this towards 3/4 properties rather than just the one.

I have approached several brokers and have had responses such as;

"It's an unregistered HMO and all HMO's need to be registered".

"The property is fine as long as the individual rooms do not have their own lock"

"There must be at least one communal living room", which this does not have.

You may well ask why if I am getting such a negative response, I don't just find somewhere else to purchase. With a rental income of £1450 per month from long term established tenants it is a little too good to let it go that easily.

Thanks
Steve

[justaboutsane]

WE have our HMO with Paragon. As the previous owner was living in the property we negotiated with her to get the property registered as an HMO, it had previously been a guest house so much of the regulations had been covered already!

I have sent you a private message also ;)

[fabs]

Hi Steve

I'm in a similar position to you. I have a property let to 4 unrelated prefessional tennants and am having problems getting a buy to let mortgage. Did you manage to have any luck with finding a lender?

Thanks, Fabs.

[propman2]

This thread didnt go as far as I would have liked, in terms o gathering info etc

I am looking at a property with 4 bedrooms and have gone through the Moneycentre a broker.

But you have to make clear the basis of what you intend to do the magic figure when it becomes a problem is 5 lettings ie into hmo licensing.

Some lenders seem to adopt criteria which allow the house to be let on indivdual ast's whereas some insist on only one ast presumably because if it comes back to the lender they are only dealing with one ast not four.

As with everything lenders will see a multi-let investment as a higher risk on their security.


Look on mortgage providers websites for an idea under conditions of mortgage to see what their conditions are.

[Tassotti]

My broker informs me that GMAC are a good lender for HMOs.