The Mortgage Cafe

Mortgage for First-Time Buyers Purchasing Their First Home of Multiple Occupation

Situational Profile

These HMO mortgages are for applicants who are first-time buyers and do not own any UK property and have no previous letting experience

  • Employed or Self-Employed
  • Does not own their own home (First Time Buyer)
  • No previous letting experience

Mortgages for HMO Property Where the Applicant does not own a Buy To Let and is not a Homeowner (First Time Buyer)

First time buyers are applicants who are not owner/occupiers and do not own any existing investment BTL or HMO properties. Most HMO lenders will only lend to applicants who own at least 1x UK property.

However, we can accommodate first time buyers looking for an HMO mortgage, subject to a) their financial status being in keeping with the property being purchased, and b) the size of mortgage being applied for. Generally speaking we will require an income/expenditure statement and an assets/liability statement to show the applicant’s suitability


Applicant Profile

Applicants must be employed or self employed with a minimum personal annual income in the region of £20,000 per annum. The higher an applicant’s income is, the easier it is to agree a mortgage. A clean credit history is required, although minor and historic credit problems can be accepted with a satisfactory written explanation. Preferred applicants should have minimal current credit commitments.

  • UK citizen with passport or UK Driving Licence for ID
  • Evidence of deposit funds (bank statement)
  • Residential address history for 3 years
  • Minimum personal income of £20,000 per annum
  • Clean credit history
  • Minimal credit commitments

Types of Property

Any category of property can be considered, even properties with more than 1x kitchen. Properties with flats, studios and bedsits in the same freehold title can be considered in England, Scotland and Wales.

  • Single Residential Buy To Let Houses
  • Houses of Multiple Occupation (HMO)
  • Properties with more than 1 kitchen considered
  • HMOs with combination of flats, studios or bedsits
  • Property in England, Scotland and Wales

General Lending Criteria

Mortgages are available for purchase, or remortgage up to 70% of purchase price, or property value. Both single AST tenancy agreements and multiple AST tenancy agreements are acceptable. HMO-7 (repayment mortgage only) HMO-10 (no personal income requirements)

  • Mortgage Terms up to 30 Years
  • Purchases or Remortgage
  • Interest only Or Capital + Interest Repayment
  • Evidence of deposit funds required
  • Maximum LTV (Remortgage) / 70% 70% 70%
  • Maximum LTV (Purchase) / 70% 70% 70%

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