Mortgage for Large HMOs
up to 30 Rooms
75% LTV Less than £500k
Interest Rate 4.75% over LIBOR
Tracker commercial mortgage for large multi unit HMOs up to 30 rooms, loans under £500k. Maximum loan to value of 75% with a pay rate of 4.70% over LIBOR for term of mortgage. Property may be held in SPV, purchases may be of an existing SPV to mitigate SDLT.
Applicant does not have to have experience in running large HMO however the lender will require a rental management company to be used where there is insufficient sector experience.
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Description | Details |
| Pay Rate | 5.50% |
| Rate Description | Term LIBOR Tracker 4.75 over LIBOR |
| Security Charge | First charge basis |
| Maximum LTV | 75% |
| Lenders Fee | 1.5% ( 1.25% can be added to loan) |
| Minimum Loan Size | £100,000 |
| Maximum Loan Size | £500,000 |
| Minimum Mortgage Term | 3 Years |
| Maximum Mortgage Term | 30 years |
| Interest Only Max Term | 10 years Interest only followed by capital and interest repayment for remaining term of loan |
| Early Repayment Charges | 3% in first 5 years, 1% thereafter |
| Income Requirements | No minimum income requirements for applicant. |
| MUFB Accepted | Yes |
| Accepted Property Types | Residential letting houses and flats in England and Wales. |
| Property Types Cont. | Available to ex-council property |
| Excluded Property Types | Hostels, residential care homes |
| Tenancy Types | DSS tenants accepted. Corporate tenants accepted inc local authority and housing association contracts. |
| Applicant HMO Experience | Experience running large HMO required. Management company may be required if applicant has insufficient experience |
| Rental Stress Test | 140% at 4.99% |
| Legal Fees | Quoted on application / AIP |
| Valuation Fees | Quoted on application / AIP |
| Product Reference | HM21152 |
Get a Personalised Quotation for this Product
75% LTV Large commercial HMO
For more details about this product or to check if this will be suitable for you, call us on 0117 2232 050