Ideal for the experienced landlord, HMO and multi-let buy-to-let mortgages allow you to purchase a residential property with the intention of letting it out to several tenants, who will all live in the prop-erty together and share facilities such as kitchens and bathrooms.
The difference between a HMO (Houses of Multiple Occupation) mortgage and a Multi-Let buy to let mortgage is that the HMO typically needs to be HMO licensed or have planning permission, whereas the multi-let category does not need a licence. Inspire of the additional paperwork that it is necessary to undertake in order to obtain the licence, HMO mortgages are often the most keenly sought out by professional developers and landlords as they can offer excellent returns on invest-ment.
When there is more than one household renting a property, lenders will regard this as a ‘multi-let’ property which will dictate the type of mortgage they can offer. As mentioned above, a property considered to be simply a multi-let will generally not need a licence. In most cases of multiple ten-ancy, however, the mortgage that you will most likely need to secure is that which falls under the HMO buy to let mortgage category. If you are unsure as to exactly which type of mortgage it is that you need to apply for, Mortgaze will be happy to talk through your person circumstances in order to determine which product aligns with your needs.
As this is such a popular market for professional developers and landlords, the Mortgaze team have vast experience in putting through successful HMO applications for many of our clients. This market is a smaller one than the traditional buy-to-let mortgages but it is also one that we believe our extensive contact list allows us to offer our clients access to the specialist lenders who will provide them with the best possible terms and rates.
As this is a product most often secured by experienced property developers and landlords within the buy-to-let sector, most lenders do tend to require prior property management history before approving HMO buy-to-let mortgages. This is true as general rule, but if you are looking to make a first time move into this market, Mortgaze will use all of our expertise in this field to secure funding options for you in accordance with the terms laid out by our extensive list of mainstream and spe-cialist lenders.
Multi unit properties are sometimes confused with Multi-let properties, but they are different. Multi-let is a term more closely linked to unlicenced HMO properties (houses in multiple occupation), when a property is rented out to several tenants. Simple example of a multi unit property is a free hold house converted into self-contained flats. Multi unit freehold blocks of flats is another example. For example, a freehold site which has been redeveloped from ground to new purpose built fats will fall under the this category.
Contact us here or by phone to find out more about HMO and multi-unit buy to let mortgages. Our advisers will be happy to arrange a free consultation with you so that we can start working towards achieving the best possible mortgage deal for you today.
The scenarios highlighted above are those that we most regularly receive requests in assistance with. It is simply for you to get a better understanding of the areas we commonly deal with. Contact us to for a more personalised search of the market based on your individual circumstances.
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We are happy to answer your queries on the phone or in person but here are answers to some of the most frequently asked questions we receive regarding buy to let mortgages for limited companies.
From April 1 2016, anyone purchasing an additional property must pay an extra 3 per cent stamp duty. Click here to calculate how much stamp you will pay to purchase a buy to let property. Please note that new rates are applicable to both Individual and companies buying a buy to let property or second home. There is no exemption if you purchase a buy to let in a limited company.
From April 2017, if you are subject to income tax, you will have a restriction applied to the relief you receive on the finance cost of running your rental business. This will apply to interest paid on any debt, as well as the cost of running your rental business. The restriction will be phased in from 6 April 2017 and fully implemented from 6 April 2020.
One option is to incorporate your property business as the income tax provisions restricting the deduction of interest cost related to residential property will not apply to companies. If you are considering purchasing your next buy to let property through a limited company or looking to refinance a limited company buy to let mortgage, we have access to wide range of lenders and products offering limited company buy to let mortgages. Please click here to gaze more.
If you are considering investing in Buy-to-Let properties through a Limited Company, it is important that you understand the advantages, disadvantages and responsibilities associated with company ownership before making a decision. At Mortgaze we always suggest that you take full financial and legal advice before proceeding.
The Bank of England’s PRA (Prudential regulatory authority) has set out new guidelines on rental stress test for buy to let mortgage. A rental stress is method which is applied by lenders to calculate your maximum loan amount based on the rental income from property. The broad guidelines are:
We have buy to let mortgage product to borrow up to 85%. So you can secure a buy to let mortgage property with a minimum 15% deposit.
To calculate this amount, a lot depend on the rental income from the property. Use our buy to let mortgage calculator to get an indicative figure.
To find out how much your buy to let mortgage and bridging loan will cost, use our latest best buy table. You can also use our buy to let calculator to find out how much you can borrow based on the rental income from a buy to let property. Contact us to for a more personalised search of the market based on your individual circumstances.
From how much you can borrow to how much it will cost ? Try our calculators to help you answer those initial queries.
These calculators are for illustrative purposes only and is not a mortgage offer. This is a guide to how much you'd pay each month. The exact amount will depend on the type of mortgage, lender and your individual circumstances.
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