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Special feature by Precise Mortgages

Do you know about the HMO licensing change?

From Monday 1st October 2018 all properties occupied by five or more people forming more than one household will need to be licensed, regardless of the number of storeys. Currently only properties with three or more storeys need to be licensed.


It is a criminal offence to operate a licensable HMO without a HMO licence. Landlords failing to apply for a licence when one is required could face a fine of up to £20,000 plus costs.


How will the HMOs licensing changes affect my customer?

There are currently around 508,000 HMOs across England, 60,000 of which are licensed. It is estimated the licensing change will mean an additional 177,000 HMOs will become subject to mandatory licensing*. The change means thousands of landlords of previously unlicensed HMOs will now need to get their property licensed with the local authority.


What opportunities are there for brokers?

The licensing change gives you the perfect opportunity to reacquaint yourself with previous HMO customers to check they know about the changes. By getting back in touch with these customers, you might also find out if they have any future remortgaging or refinancing requirements.


How can Precise Mortgages help?

As a leading specialist lender, Precise Mortgages is here to help existing HMO customers, as well as new borrowers. Our range of HMO products include the following features:

  • Applications in Limited Company or personal names considered
  • Up to 80% LTV (+ lender fees)
  • Up to 8 bedrooms and more than 1 kitchen considered
  • 5 year Fixed rate products calculated at pay rate for maximum affordability
  • Fee free products available
  • HMO experience not compulsory
  • Licensed and unlicensed properties considered


For more information about our range of HMO mortgages, visit www.precisemortgages.co.uk , or take a look at our online criteria guide here.  If you have a question, speak with the team of experts at Brightstar on 01277 508954, or email helpdesk@brightstarhub.co.uk



Roger Morris – Director of Sales

Precise Mortgages