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HMO Maximum Loan-to-Value (LTV)

Best 85% LTV HMO Buy-to-Let Rates

The Best 85% LTV HMO Buy-to-Let Rates, by type, out of the possible 28 mortgages products avaliable. To check eligibility for these mortgages use our Online Mortgage Comparison.

✨ Best 2 Year Fixed
Vida Homeloans
2 Year Fixed
7.14%
Initital Rate
10.20%
APR
Annual Percentage Rate (APR) refers to the yearly interest rate.
£ 6,800
Lender Arrangement Fee
10.14%
SVR
Standard Variable Rate (SVR) is a type of mortgage interest rate that you are most likely to go onto after finishing an introductory period.
85%
Maximum LTV
✨ Best 5 Year Fixed
Vida Homeloans
5 Year Fixed
6.79%
Initital Rate
9.20%
APR
Annual Percentage Rate (APR) refers to the yearly interest rate.
£ 6,800
Lender Arrangement Fee
10.14%
SVR
Standard Variable Rate (SVR) is a type of mortgage interest rate that you are most likely to go onto after finishing an introductory period.
85%
Maximum LTV

* These 85% LTV HMO Buy-to-Let products are for illustrative purposes only. They are not personalised to your needs, circumstances or requirements.

HMO Maximum Loan-to-Value (LTV)

What deposit is needed? (85% LTV HMO)

HMO Mortgages are available up to 85% LTV for Purchase or Remortgage. That's just a deposit of 15% of the property value. 85% LTV Buy to Let Mortgages are the highest LTV you can get as a property investor.  Landlords looking for leveraging prefer an 85% HMO Mortgage. In 2017 only one Buy-to-Let lender KRBS offered 85% LTV Mortgages. In 2018 they joined by Kensington Mortgages and Vida Home Loans in 2019.

What is an 85% LTV HMO Mortgage?

Loan to Value (LTV) is the mortgage amount percentage of the total value or purchase price. You can borrow up to 85% of the value of an HMO Property. As an example on a property worth £100,000. With an 85% LTV HMO Mortgage you can borrow up to £85,000. That means just a deposit or equity of £15,000. Mortgage Lenders consider 85% LTV as high risk giving us few options. The higher risk and fewer options are reflected in the mortgage rates and fees charged. Whilst 85% LTV HMO Mortgages are available. The maximum loan is still constrained by affordability, mainly the rent achievable.

What are the benefits of 85% LTV HMO Mortgages?

HMO mortgages at 85 LTV are the highest property investors can obtain. Higher loan to value is not available for Buy-to-Let investors. On purchases, you can buy a property with very little deposit. Helping you to expand your portfolio. On remortgages, you can raise capital from your property. Enabling you to use funds elsewhere such as a renovation or expanding your portfolio.

Can you borrow up to 85% LTV of the Property Value?

The affordability of a Buy-to-Let Mortgage is based on the rent that is achievable.  It can be difficult for landlords to reach a rental stress test of 85%. Completing the mortgage on a Five Year Fix and/or Limited Company may open up more options. Our mortgage advisers will be able to guide you in this. For illustrative purposes only. On a mortgage of £170,000 with the Kensington Product, you would require £974 rent and £1090 from KRBS.

85% LTV Mortgage Criteria

  • Available for Houses in Multiple Occupation (HMOs)
  • Available for Multi-Unit Blocks.
  • Available for Limited Company Buy to Let.
  • Available for Trading Companies.
  • Available in England, Wales, Scotland and Northern Ireland.
  • No Minimum Income.
  • Interest Only or Repayment.
  • Minimum 1 Year Landlord Experience Required

Can you get 85% LTV HMO Mortgage in a limited company?

The products available are for Personal Name or in a Limited Company Buy-to-Let if purchasing in a Special Purpose Vehicle (SPV). Trading Companies differ.

Are HMO Mortgages regulated?

HMO Mortgages are not regulated by the Financial Conduct Authority (FCA). These are classed as commercial mortgages.

 

 

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Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

Cyborg Finance Limited is registered in England and Wales (No. 12131863) at 31 Bradford Chamber Business Park, New Lane, Bradford, BD4 8BX
We are authorised and regulated by the Financial Conduct Authority (No. 919921). The FCA does not regulate most Buy to Let mortgages.
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