What are the current best mortgage products and financing options available for purchasing a large, established HMO (7+ beds) compared to a smaller 4-bed, and which lenders are most HMO-friendly right now?
Quick Answer
Mortgage options differ greatly between large (7+ bed) and small (4-bed) HMOs. Larger HMOs typically require specialist commercial finance with stricter criteria, while smaller ones might access specialist BTL products. Lending criteria focus heavily on rental coverage, with current BTL rates at 5.0-6.5% and a stress test of 125% at 5.5%.
About This Topic
Compare HMO mortgage options for 4-bed vs. 7+ bed properties in the UK. Understand specialist lender criteria, current rates (5.0-6.5%), and 125% stress tests to finance your multi-let investment.
This question is part of our Financing & Mortgages category, providing expert guidance on UK property investment.
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