How to Hub
Common pitfalls to avoid with HMO cases
As the demand for HMO mortgages increases – particularly the non-standard ones we accept – a couple of themes are emerging of complicated areas. David Walsh, Underwriting Manager shares these tips which might hopefully help to reduce miscommunication – and ultimately speed up underwriting!
We get converted HMO cases where the focus has been on the licence whether it can be in place 90 days after completion or if it needs to be in place prior to offer or completion. But here, we need to step back and look at the bigger picture. We need to ascertain what the current use is, is the property configured as an HMO or is it a family dwelling. There is a radio button on the portal which asks the broker this, if ticked correctly, the case will flag is currently not an HMO, and we can ask the right questions if not in the notes. However, if it’s missed, the underwriter is none the wiser until the valuation has come in. The key elements for an underwriter are:
- that the property has the relevant fire safety requirements
- the property has the correct rooms sizes
- the property has the correct planning
The most helpful thing is if an email or note between the intermediary and BDM or landlord is uploaded to the portal, allowing us to be more proactive than reactive, and reducing issues post valuation or offer.
FOR INTERMEDIARIES ONLY
