HMO Lending: Residential or Commercial Finance?
If you’re buying a House in Multiple Occupation, it’s easy to assume the mortgage process will look like any other buy-to-let. Same bricks and mortar. Same rental income model. Same underwriting. It isn’t. HMO lending sits in a grey area. It’s not quite residential. It’s not fully commercial. And that in-between status catches a lot of borrowers off guard. From […]
Debt Servicing Ratios in Complex HMO Finance Deals
For any HMO mortgage lender, one of the most important things to look at is the Debt Service Coverage Ratio (DSCR). Anyone looking for an HMO mortgage in the UK needs to know how lenders calculate the coverage, consider all costs, and put their forecast through a stress test. In some complicated HMO financing arrangements, […]
HMO Mortgage Challenges under Tightened UK Rental Rules
In the UK, investing in property has always been a great way to build wealth over time. But recent changes to the rules and limits on lending have made things a little harder for landlords who are interested in HMOs or serviced accommodations. Here, we break down the main problems with getting an HMO mortgage […]