40% Loan to Value (LTV) HMO Mortgages

What is an 40% Loan to Value (LTV) HMO Mortgage?

An 40% Loan to Value (LTV) HMO Mortgage is a product where an HMO lender allows a borrower, to borrow up to 40% of the HMO property value or purchase price.

This means the borrower is required to put in 60% cash or equity deposit, plus any purchase costs (stamp duty, legals, etc) to complete the HMO property transaction.

Top 10 Popular 40% Loan to Value (LTV) HMO MORTGAGES

How is a 40% Loan to Value (LTV) HMO Mortgage calculated?

Loan to Value (LTV) is calculated as a percentage (%). It’s how much you’re looking to borrow versus the value of the property, you’re looking to purchase or remortgage. If you know how much you’ll need to borrow, just divide the mortgage amount by the value of the property. To use an example, £100,000 ÷ £250,000 = 0.4. Then multiply that by 100 and you get 40% LTV.

Is a 40% Loan to Value (LTV) HMO mortgage a good choice?

LTV is important to think about because it determines the HMO mortgage rate, and affects how HMO mortgage lenders calculate whether the HMO mortgage is right for you. The lower your LTV, the lower the rates, and the more mortgage options you’ll have.

A 40% Loan to Value (LTV) HMO mortgage is at the lower end of the typical range. HMO lenders typically offer between 30% and 85% loan to value. With 40% LTV, you’ll have the maximum number of options to choose from, as it’s at the lower end of the scale and so you’ll be eligible for the cheapest rates and the best deals. It means you’ll pay a lower amount of interest over the long run compared to other higher loan to value products.

40% Loan to Value (LTV) Mortgage Benefits

Low Loan to Value %

Reducing your risk and exposure to mortgage debt low.

Lowest HMO Mortgage Rates

Monthly HMO mortgage payments will be the lowest possible.

High # of Products Available

Access to every product in the HMO mortgage market

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