HMO BTL mortgage provider

Holeydel

Hey all, I'm posting to see if anyone here is able to point me in the direction of finding a mortgage lender / broker that can provide a HMO BTL. I had a quick search on the forum already but I couldn't find anything recent.

I have 2 broker appointments this week, however one called me earlier to say the interview wouldn't be worth my while as my purchase price is in the region on 90k. 

Thanks

K_S

@holeydel There are quite a few specialist lenders who offer HMO mortgages, most of them operate only through brokers and I don't personally know of any brokers who wouldn't charge a fee for advising on an HMO mortgage, especially for a first time landlord. I suppose you could always try the free brokers recommended by MSE.

I'm sure you don't fall in that category, but 7/10 times, first time landlords who come to me enquiring about HMO mortgages balk when they see the deposit requirements, rates and product fees involved.

Holeydel

Thank you K_S, I'll follow up on your broker suggestion via MSE. You're correct in that all the HMO mortgages / mortgage providers I've come across can only be done via a broker. I've researched most of the fees associated with HMO's (deposits, interest rates, license fees etc) although the broker fee is what's missing, along with the cost of the product they would offer. It's not impossible that I still end up shocked! It would be great to get a clear picture of the HMO forecast before committing to a decision between that & a regular BTL. Thanks again.

dimbo61

Getting a normal residential mortgage can be difficult, getting a BTL mortgage is much more difficult and it's best to use a local whole of market mortgage broker who deals in BTL mortgage companies/Lenders.
Getting a HMO BTL mortgage is even more difficult and they need to know so much more information.
HMO licence and the property, fire safety, EICR,GSC, EPC, Pat testing and legionnaires checks.
Fit for Habitation requirements, bedroom and bathroom/Kitchen size if Student market.
As a HMO landlord the requirements are huge I know !

[Deleted User]

How much are you expecting to pay?
 
Every broker is different with fees but as a reference point i would charge about £500 for a btl that is going to high street, probably around £750 for something that is with a smaller lender or is a bit more hassle and then £1000ish for portfolio or hmo.

Im sure there will be low fee charging hmo brokers kicking around somewhere but personally the commission on a 90k hmo mortgage is barely worth looking at for the time it takes to arrange

Holeydel

Deleted_User said:

How much are you expecting to pay?
 
Every broker is different with fees but as a reference point i would charge about £500 for a btl that is going to high street, probably around £750 for something that is with a smaller lender or is a bit more hassle and then £1000ish for portfolio or hmo.

Im sure there will be low fee charging hmo brokers kicking around somewhere but personally the commission on a 90k hmo mortgage is barely worth looking at for the time it takes to arrange

Thanks for the responses.

I have no expectation on the fee, that's something I hope to discover later this week. I had 2 conversations earlier. One broker will explore HMO interest only mortgages. Interest only mortgages are something I've never looked into, so that'll give me something to research tonight. The other lender initially said his providers only work with experienced landlords (something I'm starting to suspect is a common requirement for HMO mortgages) however I threw him a curve ball as I've had lodgers in my home for the last 3 years, so he's looking into it.

I reckon I'll have no option but to take a regular BTL mortgage, which is fine if I know if I don't meet the HMO criteria.