Why are HMO’s so popular with landlords?
Posted on 12th August 2024 at 16:28
Key points of todays Budget and how it helps the mortgage and property market
Over the last 18 months we have seen an increase in interest rates meaning some landlords have struggled to get the rent to meet the lenders stress testing.
This has led to landlords looking at their portfolios to not only increase the rent they are receiving but also to look at how they could diversify their portfolios. HMO’s seem to be a popular way to help push those rentals up.
Many lenders have HMO products available whether the HMO is for professionals or student lets.
There has been a lot of interest over the last 18 months for corporate let HMO’s to vulnerable tenants.
Whilst this can be a great source of income to landlords as the rent can be guaranteed for a number of years, there are a handful of lenders what will look at this and the rates can normally be more to the sub prime scale.
If you are looking at going down this route for HMO’s we would recommend sending over your tenancy agreement to us for us to show a lender before you submit an application to try and ensure there will be no surprises along the way or something in the tenancy the lender would decline.
If you are looking to diversify your portfolio and dip your toe into the HMO world, contact us!
Victoria Bennett
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