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Finance for HMOs

According to the latest quarterly survey conducted by the broker Mortgages for Business, 60% of landlords plan to expand their portfolios over the next six months and 63% of them will need to refinance existing properties in order to expand. However, 62% of landlords feel that lenders are not doing enough to support property investors at the moment.

One in five (20%) feel that lenders should reduce their fees in order to support property investors, while 18% believe lenders should increase LTVs and 15% feel that lenders should increase the number of case by case lending decisions rather than rely on computers and credit scores.

Nowhere is this more evident than for HMO (Houses in Multiple Occupation) lending, where LTVs are usually lower and fees/mortgage rates often higher. This is despite the fact that demand for HMOs is expected to rise, partly due to the cuts to housing benefits, which are being implemented this year.

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