Multi let mortgage

[RichardB 3]

Hi,

I own a 4 bed property which I am looking to rent as a multi let to 4 separate tenants. As it is a small hmo and not needing a license I was wondering if anyone was aware of any products for this? Can I use a usual BTL mortgage for this?

 

thanks,

Rich 

[jakecollins 1]

Hi Rich,

It's a great question that a lot of people have asked me in the past. Historically, most lenders placed these properties on a standard HMO product, which is typically more expensive than standard BTL mortgage products, however a few certain lenders have caught onto this and as the property essentially could be sold as a large family home still, rather than be restricted to just investors, they can place these properties on their standard BTL product range. The benefits of these products is that typically, HMO valuations are more expensive, the HMO specific products tend not to come with as many incentives such as free valuations or free legals etc. whereas you may benefit from these incentives as well as a cheaper rate by opting for a lender that can provide a standard BTL product for your property. 

Kind regards,

Jake - Property Finance Adviser

www.advocatefinance.co.uk

[RichardB 3]

Thanks Jake really appreciate the help!

[harryo 3]

Hi. 

That's right i have one with my lender however i had to shop around as many will want a single tenancy agreement or limit to 3 beds. 

[bajorjoevel 0]

You can do the smart thing and look at lending terms and conditions in other countries. It is very advantageous to take out loans in Finland and EU countries at the moment, as the interest rate there is very high, which suggests that repayments can be made quickly. I took out a järjestelylaina loan for my company and I was approved for a small loan to improve the grounds of my country house. I had it rezoned as a commercial property. It turned out to be a good option with guest services. Several people can live there in different rooms, but they will all be in the same kitchen.