HMO mortgage for applicants with income less than £25,000
Low but Provable Income
Residential Multi-let Investment
Contact us on 0117 223250 to discuss your requirements with a Buy To Let mortgage specialist
Mortgage Application Assistance
We can even complete the mortgage application on your behalf. The mortgage adviser can help you complete the application over the phone or email.
Products for property investors buying property to refurbish
here are now more lenders than ever who just need to see that an applicant does have some form of provable personal income, apart from the rent to be generated by the HMO property. These lenders do not stipulate any minimum income requirement, so any amount of annual income can be accepted, subject to this being in-step with the applicant’s financial circumstances. These lenders are extremely useful for many employed people where commission, or bonuses are not guaranteed, or they have a a second job, plus self employed people with low net profits and retired people with modest pension incomes.
A wide range of properties can be accommodated, with mortgages available up to 85% of property purchase price (or property value for remortgages). Interest only is readily available and applicants do not need letting experience with some of these lenders.
For applicants with provable personal income, wishing to buy or remortgage HMO properties.
- Employed or self-employed
- Retired applicants with income from a pension
- Personal income below £25,001
- Can provide proof of personal income
Applicants must be homeowners. No first-time buyers. Applicants must be employed, self employed, or retired and be able to provide evidence to support their income. A clean credit history is required in most cases
- UK residents with a passport or UK driving licence as ID
- Evidence of deposit funds ( bank statement )
- Residential address history for 3 Years
- Acceptable explanation for any adverse credit
- No first time buyers
Types of property
A wide range of properties are acceptable, with or without an HMO licence. Some lenders permit more than one kitchen.
- Houses of multiple occupation (HMO)
- With or without an HMO Licence
- Can consider properties with more than 1 kitchen
- Lending in all areas of the United Kingdom
General Lending Criteria
Mortgages are available for purchase, or remortgage and up to 85% of purchase price, or property value. Both single AST tenancy agreements and multiple AST tenancy agreements are acceptable. Interest only is available with the majority of lenders.
1. HMO mortgages where personal income of below £20,000 per annum is acceptable:
HMO-1, HMO-3 & HMO-8 (max lending 75% LTV. Experienced landlords only)
HMO-4 & HMO-6 (Up to 85% LTV. Does not lend in Scotland. Properties must only have 1x kitchen)
HMO-5 (Up to 65% LTV. Applicants must be experienced landlords)
HMO-7 (Up to 70% LTV. Can lend to first-time buyers. Repayment mortgage only)
2. HMO mortgages where personal income of over £20,000 per annum is required:
As above in (1) plus HMO-9
3. HMO mortgages requiring a minimum personal income of £25,000 per annum:
As above in (1) & (2) plus HMO-2
- Mortgage terms up to 35 Years
- Purchases or remortgage
- Interest only or capital + interest repayment
- Full proof of applicant's income required
- Evidence of deposit funds required
- Applicants must be an existing UK homeowner, or an experienced landlord
Additional Detailsmax lending 75% LTV. Experienced landlords onlyMax lending 75% LTV. Experienced landlords onlyUp to 85% LTV. Does not lend in Scotland. Properties must only have 1x kitchenUp to 65% LTV. Applicants must be experienced landlordsUp to 85% LTV. Does not lend in Scotland. Properties must only have 1x kitchenUp to 70% LTV. Can lend to first-time buyers. Repayment mortgage onlyMax lending 75% LTV. Experienced landlords onlyPersonal income of over £20,000 per annum
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