The guide aims to help mortgage advisers support new and existing landlord clients looking to invest in the HMO segment.
The lender said the guide was created “in response to growing interest in HMO investment and is part of its wider commitment to education, support and product provision for specialist buy-to-let borrowers”.
It includes information on what defines a HMO, how licensing works, the implications of Article 4 directions and how planning permission fits into the picture.
The guide is available via the Fleet Mortgages website, with the full guide covering the below:
- The definitions of small and large HMOs
- Mandatory, Additional and Selective Licensing requirements
- Change of use rules between C3, C4 and Sui Generis planning categories
- How Article 4 directions impact permitted development rights
- Examples of different licensing/planning scenarios
- Fleet’s own HMO lending criteria and how it can support landlords
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Steve Cox, chief commercial officer at Fleet Mortgages, said: “We’re very pleased to be able to share this new guide with advisers and their landlord clients. HMOs remain an attractive investment opportunity, often providing higher yields and greater income security than standard buy-to-let properties. However, they come with a more complex regulatory landscape, particularly around licensing and planning.
“This guide aims to demystify some of those requirements and provide clarity on how Article 4 areas work, what different licence types involve, and what sort of properties can be considered. It’s a really useful tool for those advisers supporting clients who are either new to HMOs or are looking to diversify and expand their portfolios into this space.
“We want advisers to feel confident discussing HMOs with their clients, and to know that Fleet is here to help with both product expertise and lending support.”
