Landlords caught out by HMO rules need quick solutions at valuation – TBMC

The broker firm noted that landlords progressing with either a purchase or remortgage could have already spent a significant sum of money before they find out the property is unsuitable.

Speaking on Specialist Lending Solutions Television in association with Castle Trust and Magellan Homeloans, TBMC managing director Jane Simpson said she thought lenders who could support this situation would be welcomed.

Simpson highlighted that the HMO rules have “gone a little under the radar for some landlords”.

“Something that we’re considering is that actually a remortgage application or a purchase might already get to valuation stage before they realise that one of those bedrooms is too small, so there’s going to be a lot of money down,” she said.

“So having somebody who could then step in, bridge it, allow them to reconfigure and then carry on is something that we felt was really necessary, because the landlords that we speak to aren’t necessarily aware of those rules at the moment.”

Magellan Homeloans managing director Simon Read also noted that the slowing property market was having an impact on developers.

He explained that it was increasingly common for developers to take out short-term finance to ensure they could finish selling their completed properties.

See the rest of the videos in this series on the Specialist Lending Solutions website.

[Sponsored Content]