With rising interest rates, how are seasoned HMO investors structuring their debt to maximise cash flow and secure better terms? Are specific lenders offering more favourable rates for multi-unit properties or professional HMO portfolios?
Quick Answer
HMO investors are using commercial finance and specialist BTL products, often with longer fixed terms and corporate structures, to manage increased debt costs. They focus on lenders who understand HMO valuation and rental coverage, looking for options beyond standard residential mortgages.
About This Topic
HMO investors tackle 4.75% base rate by using commercial mortgages, 5-year fixed rates (5.5-6.0%), and limited company structures for tax efficiency. This guide offers insights on debt structuring.
This question is part of our Financing & Mortgages category, providing expert guidance on UK property investment.
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