All you need to know about HMO mortgage 

House in multiple occupation are becoming more popular and most of the people are finding it better in investing them. It is a special type of buy to let property, the property is basically offered to more than one tenant with a separate agreement and separate bedrooms but sharing some common areas of the property.  This type of renting property is most popular among the students or workers who have come from different cities to study or to earn. If you are also thinking to have HMO home to settle yourself in a new place then it is better to hire the HMO mortgage broker. 

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Things to know before getting into the procedure 

Understanding the fees and rates 

The mortgage lender will offer either fixed rate or variable rates, in variable rates it can go up and down during the term and in the fixed it stays the same as mentioned in the agreement. The variable rates generally walk with the bank rate of the places, that is why it keeps on fluctuating. But in the fixed rates HMO mortgages will stay the same for a period in which the payment is decided to make. The period can be up to 2 to 10 years. 

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HMO mortgage lender fees 

HMO lenders typically have different services for different fees, in some cases you may find higher rate with lower lender fees.  HMO charges rates from 3% of the loan amount and can be up to 6% of the mortgages.  Some of the professional lenders tend to fix their fees on a set of percentage of loaning amount, which could be up to 1.5% on the final amount. So, if you are thinking to apply for HMO mortgage then it is important to read all the documents, because some of them also consist of some hidden fees. 

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