What is an acceptable HMO to the Society?
We are delighted to announce that as of today, we are entering into the HMO Market with rates starting from 5.69% with a 1% fee!
The Society will be looking to lending on what it is defining as ‘Small HMOs’. Some key criteria for this Small HMO definition:
- A property with up to six occupants from more than one household in a maximum of four bedrooms
- Occupants live together and share common facilities such as a bathroom, kitchen or toilet with one main access
- These properties can be easily converted back into a single main dwelling (family home)
What LTV and Interest Coverage Ratios (ICRs) will the Society be expecting?
- Loan to Value is restricted to maximum 70% for HMO lending.
- Normal ICR rules, which apply to our other Buy to Let lending i.e 145% for any capital raising/purchases, 130% for subj 65% £4£ and 135% 65%+ £ for £ remortgages
Valuations
- HMO valuations are subject to a separate valuation fee scale compared to our normal lending, these fee’s will not be available on the website due to the semi exclusive nature, but are provided on page 2 of the rate sheet attached!
Ownership
- The ownership of the property is through a LTD Company ONLY.
- The applicants/directors of the LTD Co must be EXPERIENCED landlords i.e. have held a property for a BTL basis in personal or SPV for atleast 12 months.
- Not available to EXPATs
Nathan Waller
Business Development Manager
M: 07387040895
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