Mortgage Style wins another industry accolade

Your home may be repossessed if you do not keep up repayments on your mortgage

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Mortgage Style wins ‘Best Financial Services Supplier’ at HMO Awards

In May 2024, at the prestigious and majestic Stowe School in Buckingham, Mortgage Style won the award for “Best Financial Services Supplier” at the national HMO Awards.

Delighted to have been nominated among the high calibre finalists in our category, we were surprised and thrilled to have been chosen as the winners.

The award recognises our advisors’ hard work, skill and creativity in the solutions they devise for clients.

This blog explains more about HMO’s and how we help clients invest in them.

What are HMO’s?

HMO’s (‘Houses in Multiple Occupation’) are a specific type of rental property in which landlords provide homes for three or more unrelated tenants with shared common spaces like bathrooms and a kitchen. They’re a popular option in the UK providing stylish, modern living spaces and helping to relieve the UK’s housing crisis. Tenants in HMOs can be students, professionals or those in social housing.

What are the HMO awards?

Now in their second year and well established throughout the sector, the HMO awards recognise the leading lights in the industry, focusing on deals made, the innovative homes created, and positive changes management firms are making to the lives of tenants.

As well as celebrating success, the event brought together a diverse range of landlords to share their expertise and discuss how best to face renting trends for the future.

What makes HMO finance different from regular mortgages?

The main difference between standard mortgages and HMO finance is the property’s purpose. HMO’s are built to house tenants, not the property owner so you wouldn’t be able to use a residential mortgage to buy an HMO.

Equally, most ‘buy-to-let’ mortgages specify in their conditions that the property must only be let using one tenancy agreement (which means anyone occupying the property would have to be related or happy to sign up to a single tenancy agreement together).

HMO’s are more complicated than standard buy-to-let properties; there are additional practical issues like providing enough bathrooms and kitchen space for the tenants and extra planning and licensing requirements set by the local authority. Also, because HMO’s are let by room, you need more tenants to achieve full capacity (so there is potentially more risk the property won’t make the most money possible in rent each month if a room isn’t filled). For these reasons, we find lenders will often require a higher deposit from the borrower (usually 25% of the purchase price) for HMO finance compared to normal mortgages (which might only need a 5% deposit).

This complexity can also make HMO finance more expensive than standard mortgages (i.e. interest rates could be higher) and the lender might also require the borrower to have experience as a landlord before they’ll lend to them for an HMO purchase.

The yield (the amount of money made by renting rooms in the property) is usually higher on an HMO than standard ‘buy-to-let’ accommodation which means investors could borrow more (because their income will be higher than if they were managing a house or flat let to single tenants in the traditional manner).

Why should I choose Mortgage Style to help me with my HMO lending?… why did you win the award?

HMO mortgages aren’t straightforward but there are tried and tested ways to get the right outcome for each project you’re working on.

We spend a lot of time working on HMO deals which includes liaising with lenders about their products and what’s available. It’s vital we stay on top of their rates, policies and lending criteria so we’re ready to respond quickly when a client needs to make an investment decision.

 

Here’s what makes Mortgage Style your ‘go to’ broker for HMO investment:

  • Experience
    • our team boasts more than 100 years’ combined experience in financial services,
    • most of our advisors have been mortgage brokers for over 15 years, and
    • we work with more than 500 clients with investment property portfolios of various sizes across the UK.
  • Broad skillset
    We select mortgages from a comprehensive range of lenders through our Mortgage Style network but when we need to source bridging loans, development finance or commercial mortgages, we use our sister firm Brunel Bridging.
  • Reputation for tenacity
    Our persistent approach to research means that we can often find a mortgage for clients where other brokers have failed to. In fact, many brokers turn to us to help their clients when the case is particularly challenging.
  • 5* Service
    HMO Award’s Judge, Helen Chorley, explained that, alongside the volume of work we do for HMO landlords, it was our client reviews that helped to convince her we were worthy winners of this year’s award. With a Google rating of 5 and a Trustpilot rating of 4.9, you can be sure you’re getting a service you can rely on.

How do I get in touch?

Contact us today to arrange a free, no obligation initial conversation:

01275 370360
contact@mortgage-style.co.uk

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP TO DATE WITH YOUR MORTGAGE REPAYMENTS.

There may be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £495 to £995 and this will be discussed and agreed with you at the earliest opportunity.

The Financial Conduct Authority does not regulate commercial mortgages, some forms of buy to let mortgage and some forms of bridging finance.

By clicking the links in this blog, you will leave Mortgage Style’s regulated website. Neither Mortgage Style Ltd nor HL Partnership can be responsible for any content created and published by a third party outside our regulated site.