Fleet releases HMO guide

Fleet Mortgages has launched a guide on houses in multiple occupation (HMOs) for advisers and their clients.

The guide defines what a HMO is, where a licence is required, the advantages of investing in such properties and how standard buy-to-lets can be converted into a HMO.

It also specifies how Fleet underwrites HMO cases.

Bob Young, chief executive of Fleet Mortgages, said: “Our goal is to help them [advisers] and in turn, their clients, understand a particular section of the marketplace and Fleet Mortgages’ offering within it.

“HMOs are becoming an increasingly popular option for investors. Higher rental yields are achievable and mortgages for such properties more accessible in today’s market.

“It is therefore important for clients to understand the advantages, disadvantages and responsibilities associated with letting HMOs before making any decisions to purchase or convert a property.”

Fleet’s HMO range includes a 2-year fix at 3.99% and a lifetime tracker at 4.09% to 65% LTV. To 75% LTV is a 2-year fix at 4.19%, a 5-year fix at 4.99% and a lifetime tracker at 4.59%, all with a 2% fee.

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