In effect, the definition of a HMO will be changing, bringing an additional 177,000 properties under the HMO rules, meaning they will also need licensing. If your customer owns a property which is occupied by five or more people, comprising individuals living in two or more separate households, regardless of the number of storeys, this will be classified as a HMO.
The good news for HMO customers is that Fleet Mortgages specialise in this market, and where appropriate, they will lend on shared accommodation with Standard Products, where no HMO license is required.
When licensing is necessary, they have a range of 65%-75% LTV fixed rate products, plus a lifetime tracker offer up to 75% LTV, which is also offered with a rental calculation of 125% at 5%.
It’s likely that from October, you’ll be seeing more HMO properties which will need specific HMO (re)financing. So if you’re looking for information, support and quality products in this area, then please contact Fleet Mortgages