How Some Landlords Might Be Breaching their Mortgage Conditions

Nowadays there seems to be a mortgage product for almost every scenario, and although getting a new mortgage is more difficult than it was 15 or so years ago, competitive buy to let mortgages are still readily available. 

However with the introduction of new mortgage products there is also an increase in different terms and conditions and some could be unwittingly breaching their mortgage conditions. 

We all know that regulations for landlords has become tighter over time and in particular the regulations around Houses in Multiple Occupation, also known as HMO. 

Landlords now require a license from their local authority if the property they let is an HMO, this is when 3 or more unrelated people live at the property as at least 2 separate households – for example, 3 single people with their own rooms, or 2 couples each sharing a room.

What’s more  local authorities are now contacting lenders as part of the HMO licensing procedure, if the subject property is not on an HMO buy to let  product the landlord becomes in breach of their mortgage conditions and the lender can call in the loan. What this means is that if the property is an HMO a standard BTL product is not sufficient 

If you have an HMO on standard buy to let mortgage it is important you speak to us about remortgaging to an HMO product as soon as possible.

Our award winning mortgage brokers are available to discuss options on 0208 364 3444, alternatively get in touch using the live chat function on our website.

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