Unlock Better Rates with a Specialist HMO Remortgage
Owning a House in Multiple Occupation (HMO) property is the best and smartest way to make more money from your property. If this term is new to you, let us explain that an HMO remortgage is when you switch your current loan for a new one. You might be wondering what good this will do for you. So, to clarify, an HMO refinance you’ll get better rates, more flexible terms and the best part is that you can get your money back from your property to reinvest should you wish to do so.
Commercial Finance Network are experts in finding the best HMO remortgage deals across the whole market as we work with ALL the lenders. Our top priority is to make the process easy and stress-free for landlords.
Top Reasons to Remortgage Your HMO Property in the UK
Landlords choose to remortgage their property for a number of reasons. Let’s consider each one of them individually:
Lower Monthly Payments with Better Rates
If you’re a landlord and concerned about potentially a current high interest rate on your existing mortgage, a new HMO mortgage offer could potentially help reduce your interest and lower your monthly payments. This is one way to look at it: you could save thousands of pounds over time if HMO remortgage rates decrease even a little. This money can be invested in your property or used to generate additional income.
Release Equity to Grow
Your equity grows as your HMO’s value continues to rise. Equity is the difference between what your property is worth and what you owe on your mortgage. If you choose wisely and secure the best HMO Finance option, you might be able to release some equity from the property. And the great thing is that you can use that money to buy another HMO property or add to your portfolio if you wished to.
Get Ready for Exit Fees or Term Expiry
When your fixed-rate HMO mortgage ends, lenders often switch you to a standard variable rate (SVR), which can cost a lot more due to higher rates of interest being applied. Some deals also have fees for leaving after the first term. However, if you remortgage your HMO property before this happens, you won’t have to pay more than you have to.
Consolidate Debt
If you have taken out numerous loans or made promises to repay them, you no longer need to worry about your credit commitments or loans. With an HMO remortgage, you can potentially consolidate them all into one loan. This will reduce your monthly expenses and, in the first place, make it easier for you to repay your loan.
Our HMO Remortgage Solutions Cover:
We work with all kinds of HMOs and landlords, such as:
- Student Lets & Multi-Tenancy HMOs are homes with more than one tenant. They are common in university towns and city centres.
- Large HMO Portfolios – If you own more than one HMO, we can help you get better terms on a new mortgage for potentially all of them with a portfolio remortgage.
- Converted Properties – These are homes that were once single-family homes but have been turned into HMOs.
- Semi-Commercial HMOs – Buildings that are used for both living and working, like shops with apartments above them.
How Does a Remortgage Work?
We’ve made it easy for you to understand what’s going on:
Step 1: Consultation & Review – First, we find out what you want to do, get information about your property, and figure out the current mortgage loan amount and also potential property value.
Step 2: Market Search – Next, our team of mortgage experts searches across the entire lending market to find the best deals and compare HMO remortgage rates.
Step 3: Application Support – We package and submit your application in the professional manner which lender’s wish to see it, with fully supported documentation etc.
Step 4: Approval & Legal Work – We liaise throughout the process with all parties including the valuers, lenders and solicitors to make sure the process goes swiftly and stress-free.
Step 5: Loan Completion – Completing the Loan – Once everything is finalised, your new mortgage is live and you start benefiting from the improved terms.
Why Choose Commercial Finance Network for HMO Remortgages?
If you choose the right HMO Mortgage Broker partner, you can put your years of hard earnings to good use. We are hired by HMO landlords for several reasons:
- Access to All Lenders: As a whole-of-market broker, we work with all lenders so can search for both speciality lenders as well as the standard lenders and high-street banks.
- Open and Transparent Communication: We never make false claims, say difficult-to-understand things, or impose hidden fees.
- Tailored Solutions: We assist you in identifying the best option for your circumstances, as every landlord has unique requirements.
- Efficiency & Speed: We work fast because we understand that time is of the essence and the sooner we can complete your HMO refinance, the sooner you’ll start saving money!
What kinds of HMOs can I remortgage?
All kinds, such as small shared houses, large licensed HMOs, student rentals and semi-commercial properties.
Will my rental income affect eligibility?
Yes. When you apply for a new HMO mortgage, lenders will look at how much rent you make compared to how much you pay back. This is called the “affordability” of HMO remortgage. The more money your HMO generates in rental income, then typically the better terms you can secure.
Can I release equity from my HMO?
Yes. Many landlords refinance their HMO mortgages to get money out of their properties. You can then use this money to buy new homes, fix up old ones, or make other investments.
Do I need an HMO licence to remortgage?
Yes, most of the time. Lenders will want to see your HMO license before they approve your remortgage IF your property needs one.
Will I get different rates on an HMO remortgage compared to a normal buy-to-let?
Most likely, yes. HMO deals usually come with slightly higher rates because lenders see them as more work and a bit riskier – more tenants, more maintenance, more things that can go wrong. The good news – specialist HMO lenders often give far better terms than the big high-street banks, because they actually understand HMOs.
Can I remortgage my HMO even if it isn’t fully occupied right now?
Yes. It just might take a bit more explaining. If you’ve got a couple of empty rooms, lenders will want to know why and how quickly you expect to fill them. They’ll also look a bit more closely at your own experience and income to make sure the mortgage is still affordable between tenants.
Do I need all the licences and paperwork sorted before applying?
Yes. This is very important. Lenders want to know everything is fully signed off and above board before they’ll move forward. If your HMO licence or planning consent is still pending, most lenders will simply put the brakes on until it’s all finalised. It’s not personal – they just need to be sure the property is legally good to go.
Will my room-by-room rental income count toward the remortgage?
Yes. That’s one of the biggest advantages of owning an HMO. Lenders look at the income from all your rooms to work out affordability. The stronger and more reliable your rental income looks, the easier the remortgage process tends to be.
Can I remortgage an HMO that I recently converted?
Yes, but timing matters. If you’ve only just finished the conversion, some lenders may want to see a few months of rental history first. Others are happy to work off projected income as long as the conversion and licensing are all done properly. An experienced HMO broker can usually point you to the lenders who are more flexible with newly converted HMOs.
What if my HMO doesn’t meet current safety standards?
You’ll need to fix that before most lenders will even look at your application. Things like fire doors, smoke alarms, escape routes, and proper room sizes are non-negotiable. HMO mortgage lenders don’t just want the paperwork – they want to know the property is actually safe for tenants. If anything’s missing, get it sorted first and you’ll have a much smoother remortgage process.
Get the Best HMO Remortgage Deal Today
A better HMO remortgage can help you a lot if you wish to save money too. You can use it to get your money back and grow your property business without any problems. Whether you want to lower your repayments, expand your portfolio, or prepare for the end of a fixed term, we can help.
Commercial Finance Network make HMO remortgaging easy. As the UK’s leading commercial finance broker, we make sure you get the best deal on your HMO and long-term goals by giving you access to the whole market and a personal touch.
Ready to Get the Best HMO Remortgage Deal?
Contact us today to find out about the best HMO remortgage options for your needs. Our highly experienced HMO mortgage broker professionals will help you every step of the way.