Mortgage details for HMO License
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12 years ago
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I am in the process of applying for an HMO license. The council require the mortgage information, presumably to check that the lender knows you are operating an HMO. I currently have a buy to let with UCB, who will lend to HMO's but not, I have now discovered to ones that require a license. I am currently tied into the fixed period for more than a year with a fixed penalty of over £15,000. My LTV on this was 75% but this was when house prices were fairly high. I am very concerned that I will be forced to terminate the product and pay the penalty and if they do move me onto variable with a possible high interest rate for the period remaining after this I will have to find a large sum to reach the LTV for an HMO which at best is about 70%. I suppose what I'm asking is can the council really request this information, surely the way you fund your property is not really of any consequence to the tenants?

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