Mortgages for Multiple Occupancy
Best Mortgage Rates
Mortgages for Multiple Occupancy
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- Lloyds Bank
- 4.07% Initial
- 5 year fixed
- 6.7% APRC
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- 4.07% Initial
- 5 year fixed
- 6% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.08% Initial
- 5 year fixed
- 6.4% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.08% Initial
- 5 year fixed
- 6.4% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.09% Initial
- 5 year fixed
- 6.7% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.11% Initial
- 5 year fixed
- 5.8% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.12% Initial
- 5 year fixed
- 5.8% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.13% Initial
- 5 year fixed
- 6.4% APRC
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- 4.14% Initial
- 5 year fixed
- 6.3% APRC
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- 4.14% Initial
- 2 year fixed
- 7.7% APRC
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Mortgages For Multiple Occupancy
As is often the case with student properties and house shares, a house in multiple occupancy (HMO) is a property where multiple individuals share communal facilities such as bathrooms and kitchens.
An example of a mortgage for multiple occupancies would be when a couple or a group of friends take out a mortgage to purchase a property to live in together, or when someone takes out a buy-to-let mortgage to purchase a property that will be rented out on an HMO basis with an Assured Shorthold Tenancy agreement (AST).
Mortgages for multiple-family residences
A joint tenancy may not be suitable for borrowers who want to buy property with friends. Due to this, they may opt to have a 'tenancy in common' agreement on their mortgage, which means they are not treated as a single household.
If each individual owns a different share of the property, rather than equal ownership, this type of agreement may make it easier for them to sell their shares should they want to move out.
As a result, other parties on the mortgage would not automatically inherit a share of the mortgage if one party dies.
Mortgages for multiple occupancy buy-to-let
The buyer of an investment, buy-to-let property that is going to be rented out to multiple tenants, not within the same household, may need to find a mortgage that allows the landlord to let the property on an HMO basis.
Remember that landlords who let HMO properties may need to apply for a specific HMO license with their local council.
Depending on the local authority, the criteria for requiring a HMO license vary, so it is best to check with them for details. In general, if any of the following apply, a property will need a HMO license: it will be rented out to five or more people who form more than one household, it will be at least three stories high, and the tenants will share bathrooms and kitchens. Councils may require landlords to obtain a license even if the property is smaller or will be rented to a smaller number of tenants.
Mortgage adviser
If you are looking for a residential or buy-to-let mortgage for an HMO property, an independent mortgage adviser may be able to assist you.
When a mortgage adviser offers a whole-of-market service, they can search across a range of lenders to find their clients the best deal. Occasionally, there are mortgages from specialist lenders that can only be obtained through an intermediary, which may offer the best deal to borrowers.
To investigate your finance options call our broker team or fill in our call back form - speak to our independent mortgage broker team who will be able to offer impartial advice or you can call us on 0117 403 3464