HMO Mortgages Warrington
More management but a higher return, this is where landlords potentially look to increase yields
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What is an HMO Property?
More management but a higher return – this is where landlords often look to boost yields, whether through small improvements to the property or by using Bridging Finance for a larger extension to accommodate more tenants. As an HMO Mortgage Broker in Warrington, I help clients identify these opportunities and guide them through the process.
With the ongoing changes in legislation, I’ve ensured that my advice evolves with it. I work closely with my clients to make sure they understand what’s required of them as an HMO landlord from both a planning and building regulation perspective. The goal? To make sure your next HMO property works for you.
From a lender’s point of view, an HMO (House in Multiple Occupation) is typically defined as a property occupied by three or more people who form three separate households – meaning they’re not related. It’s also commonly defined as a property where tenants share an amenity, such as a kitchen or bathroom.
However, lenders can vary in how they define an HMO. Some focus on the number of tenancy agreements – do the tenants each have individual contracts or are they all under one agreement? Others may go by local licensing arrangements, which can differ across regions.
Will my HMO need licensing?
As an HMO Mortgage Broker Warrington, I often get asked about licensing. It varies from one local council to another. I’ve even seen cases where councils waive the need for a license if the property is let according to specific conditions. That said, typically if there are four or more individual tenants, a license and appropriate planning permissions will likely be required.
I’m a first-time landlord but I am looking at HMO’s can I proceed?
In short, yes. While many lenders prefer you to have 12 to 24 months of provable experience as a landlord, it’s absolutely possible to move straight into HMO property investment. As your trusted HMO Mortgage Broker in Warrington, I can help you find lenders open to working with first-time landlords.
Is financing an HMO purchase straight forward?
Cheesy as it sounds – with the right broker, absolutely. There are certainly more factors to consider compared to a standard residential or Buy-to-Let mortgage, but we’ll guide you through every step. That’s where working with a specialist HMO Mortgage Broker in Warrington makes a big difference.
I’ve heard the phrase ‘Sui Generis?’ What is this?
‘Sui Generis’ refers to anything that doesn’t fall under standard planning use classes. In property terms, it usually applies to larger HMOs with seven or more tenants. It’s not just limited to housing – but in this context, it’s a key consideration when planning a large-scale HMO.
Tailored Mortgage Solutions – Get in Touch
Have questions? Need a quote? Fill out the form below or call us today for expert mortgage advice that’s tailored to you.
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We will have a chat about your plans and goals.
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You receive tailored recommendations, quotes & next steps.
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We submit your application and manage everything to completion.
I’m looking for a Commercial Valuation. How do I achieve this?
This is becoming an increasingly popular topic. Over recent years, lenders have become more open to commercial valuations, depending on the specific scenario.
As an HMO Mortgage Broker Warrington, I cover this in greater depth in one of my blog posts, but briefly: if you’re aiming for a valuation based more on rental income than bricks and mortar value, I can guide you to the right lender. Other factors like the property type and Article 4 area considerations will also come into play.
Anything Else?
Absolutely. With HMOs, there are more legal aspects to consider, especially around planning and building regulations. I make sure to address these early in the process so we’re ahead of the game. In most cases, I can cover off these requirements upfront to ensure we’re on the best path from day one.
