HMO Mortgage Broker
An HMO mortgage funds a house in multiple occupation - typically three or more tenants from more than one household sharing facilities - and is priced and underwritten differently from a standard buy-to-let. Lenders advance up to 75% loan to value on 5 to 25 year terms, and the decisive question is valuation basis: a specialist lender will value a large licensed HMO on its investment value derived from the rent roll, which can be materially higher than the bricks-and-mortar comparable a mainstream lender uses. Getting that basis right is usually worth more to a landlord than shaving a quarter point off the rate.
Criteria and pricing
What lenders on our panel will typically do on this product today.
- Maximum LTV
- Typically 75%
- Rooms
- Standard products to 6 beds; specialist lenders 7-20+ rooms
- Valuation basis
- Bricks and mortar, or investment value on the rent roll for larger licensed HMOs
- Interest cover
- 125-145% at a stressed rate, on the achievable room income
- Licensing
- Mandatory licence, or evidence the application is in progress
- Article 4 areas
- Funded where planning is in place - lenders check C4 / sui generis use
- Borrower
- Individual or SPV; first-time HMO landlords accepted with BTL experience
- Term
- 5-25 years; interest-only widely available
Worked example - 7-bed licensed HMO
- Room rate
- £620 pcm all inclusive
- Gross annual rent (95% occupancy)
- ≈ £49,500
- Operating costs (bills, management, voids)
- ≈ £16,000
- Net operating income
- ≈ £33,500
- Investment value at a 7.5% yield
- ≈ £446,000
- Bricks-and-mortar comparable
- £340,000
- Loan at 75% of investment value
- £334,500
- Additional borrowing vs comparable basis
- ≈ £79,500
Figures are typical UK market ranges as at 2026 and are indicative only - your terms depend on the asset, the income, the exit and the lender we place the case with.
Who this works for — and who it does not
You are likely to qualify if
- Mandatory HMO licence in place or applied for, where the property requires one
- Correct planning use - C4, or sui generis for 7+ occupants
- Room schedule, fire safety certification and the current tenancy schedule
- Existing landlord experience for large or student HMOs; some lenders require 12 months
- Deposit of 25% plus fees
This is the wrong product if
- Unlicensed properties that should be licensed - lenders will decline until the position is regularised
- Conversions still under works, which need refurbishment bridging first and a refinance after
- Article 4 areas where the required planning has never been obtained
- Landlords expecting investment valuation on a small 4-bed - that basis applies to larger licensed stock
What actually happens, and when
- Week 1
Structure and valuation basis
We decide whether the case is stronger on bricks and mortar or investment value, and select the lender panel accordingly.
- Week 1-2
Offer in principle
Terms issued with the room schedule, licence and rent roll supplied up front.
- Week 2-4
Valuation
An HMO-experienced valuer inspects, checks licensing and comments on room sizes and fire safety.
- Week 4-8
Legals and completion
Six to eight weeks is normal on a purchase, faster on a straight refinance.
Frequently asked
Request indicative terms
Four details are all a lender needs to price a case: how much, what secures it, when you need it and how it is repaid. Send those and we come back with realistic terms — or tell you plainly that the case will not place.
Request indicative terms
Tell us the four things every lender asks first. We come back with realistic terms, usually the same working day.