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Buy to Let Lending on HMOs

Frequently Asked Questions 



Q. Will Keystone lend on HMO properties?

A. Yes, we will lend on HMOs up to 8-bedrooms to a maximum of 75% loan to value. We will accept HMO applications from individuals, LLPs, SPVs & trading limited companies.



Q. What products do Keystone offer on HMOs?

A. All the rates shown in the specialist buy to let range within the product guide are available on HMO transactions. We will lend up to 75% loan to value and fees can be added to the loan.



Q. Does the applicant need to be an experienced landlord?

A. Yes, the applicant must have owned and let a property for 6 months or more. The applicant does not need to be a homeowner.



Q.Do you need a HMO licence to be in place?

A. A HMO licence is required if the local authority deems it necessary through mandatory, additional or selective licensing. If a licence is required on a purchase transaction we must receive evidence that the landlord has applied, and had confirmation that the part one of the HMO licence (a fit and proper person check) has been approved.



Q. What valuers do Keystone use for HMO property valuations?

A. All HMO valuations are on a commercial basis and are carried out by Allied Surveyors.



Q. Will Keystone lend on multi-let properties?

A. Yes, multi-let properties (let to two or more individuals from more than one household, but not subject to HMO licensing, either mandatory, selective or additional) will be considered on HMO criteria and will need to use the specialist buy to let product range.



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