JB Financial Solutions Ltd is authorised and regulated by the Financial Conduct Authority (FCA).
Our FCA number is 531615.
House in Multiple Occupation (HMO) is defined as a property rented out by at least three people who are all from a different household. They may share a bathroom and a kitchen but have their own separate bedroom within a property. This type of arrangement is common in areas where rents are very high and housing availability is in short supply. You would most likely find properties of this type in the large cities in the UK.
This type of mortgage is required when a property is rented to an immediate family member. It is called Regulated because conventional BTL mortgages are not regulated. Common examples of a regulated BTL mortgage include a landlord renting a property to a sibling, parents renting to their child/children, and grandparents renting from their children. It's important to note that Regulated BTLs only apply to immediate families.
A portfolio landlord is a borrower with four or more BTL properties rented in the UK. The application process is very similar to normal BTL, However, a new lender will want to complete an assessment of the background properties to establish they meet a specific rental/loan coverage ratio. We can help with arranging this process and making sure all the lender criteria are met.
It is possible to obtain BTL mortgages with bad credit in the background. Depending on when the adverse events occurred, it is likely to have an impact on the rates available to a borrower and sometimes a larger deposit may be required. Where this is the case, delaying making an application until improved rates can be obtained can make a BTL more cost-effective.