Mortgages for HMO flats situated above commercial property
e can arrange mortgages for flats, maisonettes and duplex apartments above commercial properties. These will usually be leasehold (unless in Scotland). Commonly, these properties will be flats, above retail shops, but not always. They can be arranged as bedsits, or studios, or simply rooms let individually. In some cases there may be multiple flats above the commercial premises. All combinations can be accepted. We can also arrange mortgages for the whole freehold property including the commercial element.
Properties will normally have shared kitchen and bathroom facilities, although en-suites are allowed by all lenders. Multiple bathrooms are allowed, but some lenders will not lend for properties with more than 1x kitchen. Mortgages are 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.
Lending for flats, or maisonettes, typically situated above retail premises and to be used for multiple tenants sharing facilities. Tenants can be students, or working professionals (refer for tenants on benefits).
- Flats with a number of letting rooms above commercial premises
- Maisonettes, or duplex apartments above retail shops
- Multiple flats above retail shops
Applicants should be owner occupiers. In some cases, professional landlords who are not owner occupiers can be accepted. Applicants should be able to demonstrate a good level of personal income. A clean credit history is required.
- Evidence of deposit funds (bank statement )
- Able to provide proof of income; employed, self employed or pension
- Clean credit history
- Some minor and historic adverse credit can be considered
- UK bank account holder
- Previous letting experience
Types of property
Properties with large numbers of letting rooms are acceptable. Multiple self contained flats, studios and or bedsits in the same leasehold title, are also acceptable. Some lenders do not accept properties above fast-food outlets, restaurants, licensed premises, shops with associated smells/chemicals/inflammables etc.
- Houses of Multiple Occupation (HMO)
- Tenants can be students, or working professionals
- Single AST and Multiple AST tenancy agreements accepted
- Property in England, Scotland and Wales
- Properties with or without a HMO Licence
- En-suite facilities in rooms are accepted
- Cooking facilities in rooms accepted
- Shared kitchen and bathroom facilities accepted
- Mixed unit accommodation of flats, studios, bedsits up to 20 units within title (refer if over)
- Properties arranged as flats, studios or bedsits
General Lending Guidelines for HMOs above commercial
Mortgages are available for purchase, or remortgage generally up to 75% of purchase price, or property value. Interest only, or repayment, or a mix of both
HMO-1 – Maximum lending is 75% LTV. Experienced landlords only.
HMO-2 – Minimum personal income of £25,000 pa (single or joint). Applicants must have at least 3 years letting experience with existing investment property.*
HMO-3 & HMO-8 – Maximum lending is 75% LTV. Experienced landlords only.
HMO-4 & HMO-6 – No lending in Scotland. Properties must only have 1x kitchen. Maximum of 8x rooms let, or up to 4x self-contained flats in the title.*
HMO-7 – Flexible attitude to property type and location. This is a repayment mortgage only.
*Property exclusions – cannot be above fast-food outlets, restaurants, licensed premises, shops with associated smells/chemicals/inflammables etc.
- Purchases or remortgage
- Interest only or capital + interest repayment
- Properties located in England, Wales, Scotland accepted
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.
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