HMO - is this allowed?

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    HMO - is this allowed?

    I currently have a residential mortgage and am nearing the end of the two year fixed period so I am looking to remortgage. I no longer want to live in the property and am considering moving out and renting out the property and turning it into an HMO. Would I need to move onto a buy to let mortgage? And do I have to mention to the lender about the HMO or can I just get a buy to let mortgage and not mention it? What would you advise is the best way to go about it? I am a first time buyer so I know it's tricky to get buy to let mortgage as it is let alone mentioning to a provider about an HMO.

    Any advice would be really appreciated!

    Many Thanks

    #2
    You are asking us whether we are going to advise you to defraud a mortgage provider.. or to use the property (that actually mostly BELONGS to the mortgage provider) in breach of any agreement you have with them. What do YOU think is a good idea?

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      #3
      Yes, you need a buy to let mortgage and yes, you need to get one appropriate to an HMO.

      If you let on a residential mortgage and are found out (lenders are pretty focussed on the issue, as they are heavily regulated themselves) you will be placed on a mortgage blacklist (the Hunter system) which will have consequences for your property lending pretty much forever.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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        #4
        Yes you certainly need to declare the type of property to the lender , furthermore it has to be sanctioned by the Council which in turn requires an application. Don't try and play clever , I had a client three years ago who ignored my warnings which is why he is an ex -client, ignored the warning from the Council and in turn got find £10000 for two breaches , it hit the press and guess what ,he cannot now raise a mortgage as he has to declare that he has a criminal conviction for a matter not involving a motoring matter and suffers the ignominy of being considered a criminal. Lenders alike don't like fraudsters.

        Your question on reflection seems too obvious as anyone with a modicum of intelligence would know that such matters are fraudulent not forgetting the fact that the Insurance on the building would be voided if a claim was made.

        Without wishing to be rude , clearly you have no knowledge of Buy to Let , so here is a free lesson. Lenders are strictly averse to First Time investors trying their hand at owning and running an HMO , any lender that might run a case would be charging for it.

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