Why HMO and Vacation Rental Owners Should Choose the Right Ipass direct lender loans

Landlords who run specialty rentals like HMOs and short-term or vacation rentals can reap greater rewards than traditional rentals. But it is also more imperative to make the right choices.

The market for alternative and specialty mortgages is arguably booming right now. Like the rest of the lending industry today, Ipass direct lender loans have historically been incredibly cheap. For owners of HMOs (multi-occupancy homes), as well as those managing short-term rentals and vacation rentals, now is a great time to borrow to buy.

According to Mortgage Broker Tools, while the options are plentiful and the rates are low, getting the right mortgage is extremely important for specialty homeowners. There can be huge variations between what lenders will offer and the terms available, and HMO and vacation rental owners can end up paying too much if they choose the wrong one.

Growing popularity of HMOs and short-term rental investments

In recent years, these types of specialty properties have proven to be more lucrative than ever for many homeowners. The yields on offer can be huge in the HMO arena, and there is the added benefit of fewer empty periods when people come and go as the rooms are rented separately. While there may be more work as well, and the HMO license is a consideration as well as additional regulation, it is still worth it for many homeowners Ipass direct lender loans"}” data-sheets-userformat=”{"2":513,"3":{"1":0},"12":0}”>Ipass direct lender loans

Likewise, many rental owners have turned to vacation rentals and short-term rentals because of an array of tax advantages that can make them more lucrative than long-term rentals. Again, this is not the answer for everyone, but many have seen huge success through Airbnb and other vacation home portals on their properties. This is even more important since the pandemic, with the increase in demand for ‘stay’ in UK vacation rentals.

With the growth in popularity of these two avenues, the number of products offered and the number of lenders willing to lend to these types of properties have increased.

Thorough research is the key

Tanya Toumadj, CEO of Mortgage Broker Tools, said, “Mortgage Broker Tools offers by far the most comprehensive affordability results of any vendor in the market. Now we can show that choosing the right lender makes a bigger difference on specialty rental investments, such as HMOs and vacation rentals, which are becoming increasingly popular due to the higher returns they can offer.

“This is due to the variety of methods used by different lenders to calculate the affordability of these types of investments. Some lenders, for example, will calculate affordability based on the property rented on a standard AST, although in reality it would have greater earning potential.

“Criteria are also essential for specialist rental investments, as there are many nuances that can affect a lender’s ability or not to lend on a property. So, thorough research up front is a must for brokers who wish to take advantage of this growing opportunity and the best way to do this is to use the most comprehensive platform available in the market.

BuyAssociation offers investors a range of HMO properties and short-term rentals, as well as traditional rentals. Browse some of our current investment opportunities or contact us for more information.