HMO mortgages for UK landlords

HMO properties present a great opportunity for landlords because they commonly offer higher yields than standard buy to lets.

If you buy the property at the right price, the rental income from multiple rooms renders the total income higher and therefore more profitable.

HMO mortgage rates

From application to payout, as specialist brokers we help and support landlords to find the HMO mortgages that best match your financial goals. 

Use the table below to see latest APR, loan to value amounts and details of early repayment charges. Speak to an advisor to establish your eligibility.

Rate Reverting Rate
LTV
Lender Fee Product
ERC
1.60% then 5.74% Fixed for 25 months 5.74% 60% £2534 Fixed 25 months Enquire
1.84% then 5.74% Fixed for 25 months 5.74% 60% £1034 Fixed 25 months Enquire
1.85% then 5.74% Variable for 24 months 5.74% 60% £234 Variable 24 months Enquire

Mortgage lenders

We have access to and have built strong working relationships with a wide range of HMO mortgage lenders.

HMO criteria are different to those for a standard buy-to-let mortgage. Talk to our team and be fully ready to make an HMO mortgage application for the best chance of approval.

Our expert advisors will help you find HMO mortgages best suited to your financial requirements and future plans.

HMO mortgage criteria

  1. Loan amount from £50,000 to £2 million
  2. Maximum loan to value up to 80% LTV
  3. Unlicenced HMOs Submit for consideration (the property may need to be in licensable condition and let on a single AST agreement)
  4. Self contained units maximum of 20
  5. Individual rooms no limit on number (subject to other criteria)
  6. Multiple kitchens considered
  7. Tenancy agreements individual rooms or joint and severally liable tenancy agreements
  8. Tenants receiving benefits considered
  9. Affordability tests can include rental for each room or flat

Read our article "So, you want to be an HMO landlord?"Being an HMO Landlord

What qualifies as an HMO property?

An HMO is a let property where three or more tenants from more than one household share facilities such as a bathroom or kitchen.

We can also source HMO mortgages for multi-unit properties. These are classified as anything from a semi-detached house split into two self-contained flats or a new purpose built block of 20 self-contained flats on one freehold title.

If capable of sale, each unit should have a minimum property value of £50K.

Apply for a House in Multiple Occupation licence

Use the UK government's website to identify which council issues licences for your property, using its postcode:

You can also access further information regarding HMO's and their licensing.

HMO funding can be difficult to get; let us help you 

Our team differentiate themselves from the competition by offering our customers:

  • a choice of fixed and tracker HMO rates
  • quick turnaround
  • decision in principle often within two hours

It is becoming more common for people to choose to live in shared accommodation, especially young professionals based in cities. With exceptional rental returns, landlords are being increasingly attracted to this sector, although funding can be very restrictive.

Our expert team have a sound knowledge of the specialist buy-to-let sector, including HMO lenders. We can source a competitive deal for your HMO finance.

Options for remortgages with HMO properties

If you would like to remortgage your HMO property contact our team for rates and repayments on HMO remortgage products. We have access to many lenders who can help.

To get remortgage details you can submit your details using the link below, or call us for free on the telephone number at the top of this page.

Interested in an HMO mortgage? Click here to enquire

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