Buy to Let Multiple ASTs

A Buy to Let with tenancy agreement typically refers to a buy to let property where the property is let on a room by room basis. A typical example would be a three bedroom house rented to three separate individuals who each have their own Assured Shorthold Tenancy (AST) agreement.

Clients who are looking to obtain a mortgage on this type of property typically tell us that having multiple tenancy agreements allows them to receive a greater rental income for the property than if it was let on a single AST. Additionally, it gives young sharers more flexibility in moving sharers into/out of the property as their requirements change e.g. job location etc.

We work with a number of lenders that are happy to consider these types of properties on standard buy to let mortgage rates as long as there is no HMO (House of Multiple Occupation) license required by the local authority.

We also work with a number of lenders that are happy to consider properties let on individual ASTs where the property is a licensed HMO, although the mortgage rates are typically higher than standard buy to let mortgage rates.