HMO Property Investment | Top Tips for Getting an HMO Mortgage

Do you have aspirations to be an HMO landlord?
Well if you do, you’re going to need to get your head around getting a specialist HMO mortgage.
In this video I go through 4 top tips for getting an HMO mortgage, and these are:
1. Interest rates
2. Valuations
3. Experience
4. Criteria
These are the fundamental parts of an HMO mortgage that you MUST know before searching for your first HMO property.
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[@davidodimayo9265]

Excellent video, thank you.

[@thesamnorris]

Thanks David!

[@brumball2503]

I do social housing in Birmingham, She is right its very difficult to find your way. It took me over a year to find the sources and the process took some doing. I have 10 properties not my own, I make £1,800 per month per house. DO NOT get more than 10. You can become very wealthy if you put in the effort. If anyone needs any advice let me know.

[@thesamnorris]

Once you get it right social housing is a great strategy. I’ve got other videos on this subject specifically. Have you seen these?

[@amark4775]

You mentioned in previous comments that lenders can give us a mortgage if if own our property. Can I still get a HMO mortgage if I'm paying for my current mortgage? Is that classified as owning your home ?

[@thesamnorris]

Yes, any property you own classifies you as a homeowner. This just ticks a box with many lenders criteria

[@taoyu3045]

Thanks for sharing,very helpful, is there a mortgage suitable for service accommodation?

[@thesamnorris]

Hey Tao, thanks for your questions. This mortgage is for HMO purposes, so a house of multiple occupancy. This would not work for Serviced Accommodation. We would need to get a special mortgage just for these purposes. I have a video on this too - kzbin.info/www/bejne/d6W1lJ5qecmnmck

[@yousurfer2]

Is 6.9% too high gor hmo as half the income eill go on repayments

[@thesamnorris]

At the moment, potentially yes. How come you’ve had to opt for a higher rate?

[@yousurfer2]

@@thesamnorris was told it was to get a commercial val

[@AAA19999]

Does BTL experience to get an HMO mortgage count even if it's fully let and managed BTL or given to housing association and almost completely hands off ?

[@thesamnorris]

Yes it does. It’s actually strange when you think about it that lenders class this experience but rent 2 rent they don’t. But, at least you know the rules of the game 💪🏻

[@AAA19999]

@@thesamnorris thanks for the response and great videos

[@jordanwells123]

is it possible to get a hmo mortgage in your personal name (not a company) with no landlord experience? For example, a homeowner with 1 residential mortgage and decent financial situation who is eligible for buy to let mortgage.

[@jordanwells123]

I'm guessing the answer is no. But what about using a standard buy to let mortgage for a mini HMO with 4 households and no license required?

[@thesamnorris]

@@jordanwells123 Hey Jordan. The answer to your first question is yes. the borrowing entity (limited co vs personal name) isnt really the issue, its the lack of experience. However, if you own your own home, then it is easier to get a HMO mortgage as a first time buyer. with regards the second question, no, you need an HMO mortgage if you are renting out rooms individually. there is technically no such thing as a mini HMO from a lenders point of view. its either an HMO or it isnt. hope this helps :-)

[@jordanwells123]

@@thesamnorris Hi, thanks for the reply! I'm a bit confused though, so you're saying I could get a HMO mortgage with no previous landlord experience? Because I own where I live?

[@thesamnorris]

@@jordanwells123 Yes, that's right. Lenders place importance ins experience, but also, owning assets, which is what they see your home as. So owning your home, and having a history of paying a mortgage, gives lenders more comfort.

[@bigbawsdogg]

Does r2rhmo count for experience?

[@thesamnorris]

Unfortunately not. Lenses only count landlord experience from properties you own.

[@bigbawsdogg]

@@thesamnorris *sigh*

[@thesamnorris]

@@bigbawsdogg maybe in the future, but lenders do want to see that you are an owner of an investment property as part of their risk assessment.