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If you’re trying to get a mortgage for an HMO (House in Multiple Occupation), you’ve probably discovered that most lenders run a mile when they hear those three letters. Maybe you’ve found a large property perfect for conversion, or you’re already successfully running HMOs and want to expand.
You know there’s huge demand from young professionals and students. But mainstream lenders won’t even look at your application.
The problem is that most banks’ computer systems automatically reject HMO applications. They see multiple tenants, licensing requirements, and management complexity and their system just says “too difficult”.
We work with specialist lenders who actually understands HMO buy to let mortgages and actively want to lend on them.
These aren’t your typical high street banks who panic at anything beyond a simple buy-to-let.
These are lenders who understand the HMO business model and recognise the higher yields they generate.
We know which lenders will:
• Finance HMOs with 6, 7, or even 10+ bedrooms
• Understand room-by-room rental valuations
• Accept properties requiring mandatory or additional licensing
• Lend on both existing HMOs and conversion projects
• Consider multi-let properties and student HMOs
• Work with portfolios of multiple HMOs
•Work with light refurbs or complete gut jobs
Our HMO mortgage application process begins with an initial consultation where we discuss your HMO plans and property goals. Once we understand your requirements, we identify lenders offering the best HMO deals for your situation.
We then compile all necessary documents and ensure your application meets the lending criteria before submitting your mortgage application to the chosen lenders.
The lender will arrange an HMO-specialist valuation of the property, after which you'll receive your mortgage offer. Finally, the legal work is finalised and you complete the purchase of your HMO property.
Typically 25-40%. Some specialist lenders will do 75% LTV for experienced HMO landlords with good track records. First-time HMO investors usually need 35-40% deposit. The property type and your experience make a big difference.
Some lenders want HMO experience, but others will consider first-timers if the numbers stack up. Some lenders also value experience in standard buy-to-lets or other business experience.
You will most likely need to move to a lender that offers HMO specific products because these are different from a standard Buy to Let.
HMO mortgages are generally slightly more expensive than typical buy-to-let mortgages.
HMO mortgages are offered through specialist lenders and are usually taken on an interest only basis and may be subject to a minimum HMO property value, early repayment charges and other product arrangement fees. Buy-to-let mortgages for HMO properties are simply referred to as HMO mortgages.
An HMO mortgage is a specialist type of buy to let mortgage designed for properties rented to three or more unrelated tenants who share facilities like kitchens and bathrooms. HMO mortgages differ from standard buy-to-let mortgages because lenders assess the rental income from each room rather than the property as a whole. HMO properties generate strong rental income, making them attractive to portfolio landlords. However, securing an HMO mortgage requires specialist knowledge of which lenders offer competitive deals and understand HMO lending criteria.
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Beyond HMO mortgages, we offer:
• Buy to Let Remortgages: For all types of rental properties
• Commercial Mortgages: For business premises and investments
• Bridging Loans: Fast finance solutions
• Auction Finance: Quick completions for auction purchases
• Development Finance: For property conversion projects.
• Landlord Insurance: Comprehensive cover for your HMO property
• Rent Guarantee Insurance: Protects your rental income if tenants default
• Life Insurance: Ensures your mortgage is covered
• Buildings and Contents Insurance: Specialised policies for HMO properties
Please call us using the telephone numbers below. Alternatively please use the contact form and we will get back to you as soon as possible.