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HMO Mortgage
A specialized mortgage product designed for Houses in Multiple Occupation, typically requiring higher deposits and offering different terms than standard buy-to-let mortgages.
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Specialist mortgage solutions for Houses in Multiple Occupation.
HMO mortgages are specialist lending products designed specifically for Houses in Multiple Occupation, where individual rooms are rented to separate tenants who share common areas like kitchens and bathrooms. Unlike standard buy-to-let mortgages, HMO mortgages take into account the higher rental yields that multi-let properties typically generate, often allowing borrowers to access more favorable terms based on rental income rather than solely personal earnings. These mortgages are essential for property investors looking to maximize returns from their rental properties, as HMOs can generate significantly higher rental income per property compared to single-let arrangements. However, they require specialist lenders who understand the unique characteristics of HMO properties, including licensing requirements, management complexity, and tenant turnover considerations. Our platform connects you with experienced HMO mortgage specialists who can offer competitive rates and terms tailored to your specific property and investment strategy.
Explore our specialist HMO mortgage solutions tailored to different investor needs and property types.
Limited Company HMO mortgages are specialist financing products for property investors who wish to purchase and operate HMO properties through a corporate structure rather than personally. These mortgages offer significant tax advantages, including corporation tax rates (typically lower than higher-rate personal tax), the ability to claim mortgage interest as a business expense, and opportunities for tax-efficient profit extraction through dividends.
Learn moreCommercial HMO mortgages are specialized financing solutions for large-scale, multi-occupancy properties that often exceed the scope of standard residential HMO lending. These properties typically include former commercial buildings converted to residential use, mixed-use developments, or purpose-built accommodation blocks with significant numbers of units.
Learn moreHMO Portfolio mortgages are designed for experienced property investors who own or plan to acquire multiple HMO properties as part of a larger investment strategy. These products offer several advantages over individual property mortgages, including portfolio-level underwriting that considers the combined performance and risk of all properties, potential rate discounts for larger portfolios, and streamlined application processes for additional acquisitions.
Learn moreRefurbishment HMO mortgages are short-term financing solutions that combine property purchase costs with renovation expenses, enabling investors to buy properties that require improvement work to become viable HMOs. These products typically offer 70-75% of both the purchase price and refurbishment costs, with funds released in stages as work progresses.
Learn moreLarge HMO mortgages are specialist financing products for substantial multi-occupancy properties, typically featuring 8 or more bedrooms and often extending across multiple floors or buildings. These properties require different underwriting approaches due to their scale, complexity, and higher rental yields.
Learn moreExpat HMO mortgages enable UK nationals living abroad and foreign nationals to invest in UK HMO properties while residing overseas. These specialist products address the unique challenges faced by expat borrowers, including foreign income verification, currency considerations, and remote property management.
Learn moreBad Credit HMO mortgages are specialist lending products designed for property investors who have experienced credit difficulties but want to invest in HMO properties. These lenders focus primarily on the property's rental income potential and the borrower's current financial situation rather than historical credit issues.
Learn moreStudent HMO mortgages are specialized financing products for properties specifically intended to house university and college students. These properties are typically located near educational institutions and are designed to meet the unique needs of student tenants, including furnished accommodation, strong internet connectivity, and appropriate social spaces.
Learn moreMulti-Unit Freehold HMO mortgages finance freehold properties that contain multiple self-contained units, each capable of generating independent rental income. These properties might include converted houses with separate flats, purpose-built blocks with multiple units, or mixed-use buildings combining residential and commercial space.
Learn moreFirst Time Landlord HMO mortgages are designed for individuals entering the property investment market with their first HMO purchase. These products recognize that newcomers to landlording need additional support and guidance while building their property portfolio.
Learn moreLLP HMO mortgages are designed specifically for Limited Liability Partnerships that want to invest in Houses in Multiple Occupation. An LLP combines the limited liability protection of a company with the operational flexibility of a partnership, making it an attractive structure for property investors working together.
Learn moreLenders who understand HMO properties and rental yields.
Underwriting based on rental potential, not just personal income.
Products designed to help grow your HMO portfolio.
Access to specialist HMO mortgage rates from 4.5%.
Up to 75% LTV available for the right property and borrower.
Manual underwriting for complex cases and unique properties.
Check if you meet our criteria for hmo mortgages:
Our streamlined mortgage process makes it simple and stress-free:
Discuss your mortgage needs and current situation with our specialist advisors.
Our experienced team works to ensure your mortgage completes as quickly as possible. We'll keep you updated throughout the process and handle any issues that arise.
Live rates from our specialist lenders for hmo mortgages:
Important Notice: The rates displayed on this page are not currently correct and should not be used for decision making. Please contact us for up-to-date rates.
| Lending | Term | Type | APR | LTV | Fees | Min Loan | Max Loan |
|---|---|---|---|---|---|---|---|
HMO Mortgages | 2Yr | Fixed | 6.19% | 75% | £0 | £25K | £1.5M |
HMO Mortgages | 2Yr | Discount | 5.58% | 75% | £1,999 | £25K | £1.5M |
HMO Mortgages | 5Yr | Fixed | 5.89% | 75% | 0–1.5% | £25K | £1.5M |
HMO Mortgages | 2Yr | Tracker | 6.09% | 75% | 2% | £100K | £1M |
HMO Mortgages | 5Yr | Fixed | 6.59% | 75% | 2% | £100K | £1M |
HMO Mortgages | 2Yr | Fixed | 6.24% | 75% | £999 | £25K | £750K |
HMO Mortgages | 5Yr | Fixed | 5.79% | 75% | £999 | £25K | £750K |
Understand the costs involved with hmo mortgages:
Fees can vary significantly between lenders and depend on your specific circumstances. Our brokers will provide you with a detailed breakdown of all costs before you proceed. Some fees may be negotiable or waived depending on the lender and loan amount.
Find answers to common questions about HMO Mortgages:
An HMO mortgage is a loan for properties rented to multiple tenants who are not from the same household.
Most lenders require a minimum deposit of 25% of the property value for HMO mortgages.
Yes, most HMO properties require a license from your local council, especially if there are 5 or more tenants.
Minimum room sizes vary by council, but typically single rooms must be at least 6.5m² and double rooms 10.2m². Some councils require larger minimums.
HMO mortgage rates typically range from 4.5% to 7.5% depending on loan-to-value, property type, and your experience level. Rates are generally higher than standard buy-to-let mortgages.
Yes, most lenders accept gifted deposits for HMO mortgages, but you'll need a gift letter and proof of the donor's identity and source of funds.
Apply through your local council's website or office. You'll need property details, floor plans, safety certificates, and to pay a fee. Processing typically takes 8-12 weeks.
HMO safety requirements include fire safety measures, gas and electrical safety certificates, adequate heating, and proper waste disposal. Specific requirements vary by council.
You'll need proof of income, bank statements, property details, HMO license (if applicable), rental income projections, and potentially a business plan for larger HMOs.
HMO mortgage applications typically take 4-8 weeks from application to completion, depending on the lender, property complexity, and whether you have an existing HMO license.
Important terminology related to HMO Mortgages:
