HMO Lending New Deals
It has been brought to my attention that some lenders have moved back into the HMO market.
This, I think is extremely good news!
It is available to professionals and existing landlords only.
Even better is the fact they are happy to lend as below:-
For example, if the valuation is £150k and purchase price is £100k, the loan would be the lower of:£150k x 75% or £100k x 95%, ie, £95k
If valuation is £120k and purchase price is £110k, the loan would be the lower of: £120k x 75% or £110k x 95%, ie, £90k
If valuation and purchase price are both £100k, the loan would be the lower of: £100k x 75% or £100k x 95%, ie £75k
I have had the above confirmed. Could you please make your contacts and members aware of this development? Should you have any questions, please don’t hesitate to get in touch.
Article Courtesy Of Jim Old @ Smith James Mortgages
