It is not unusual for an experienced landlord to want to get involved in a house in multiple occupation, due to the potential higher yields on offer. Not all buy to let mortgage lenders offer these and those that do can sometimes offer different interest rates on HMO mortgages than standard buy to lets. The Financial Conduct Authority does not regulate some types of buy to let or commercial mortgages.
Get StartedA typical definition of an HMO would be a property occupied by 5 or more people, 5-7 lettable rooms and property with more than one tenancy agreement in place. Houses that are subject to selective licencing are only classified as HMOs where at least one of the above conditions are met. As a knowledgeable mortgage broker, we can provide the guidance and support you need to get you through the HMO mortgage journey.
Apply NowNo, you have to take out a buy to let mortgage. Not all buy to let lenders will lend on HMO’s and those that do often have a specialist range of products.
The minimum deposit varies from lender to lender but it would be no less than 25%.
A property falls under the category of house in multiple occupation if it is rented out by 3 parties from different households, but they share the properties facilities such as a bathroom or a kitchen. On property websites you may see this listed as a “house share”. Blocks of flats and bedsits do not count as HMO properties, though a single flat rented by multiple people sharing particular facilities may be qualified as such. In order to set up a property as an HMO, you must contact your local authority.
Like any other mortgage, the lender will instruct a local independent valuer to confirm the property’s value.
To many, becoming a landlord for an HMO property means great reward, as multiple incomes can often contribute to a higher profit margin than if you were receiving rent from a single party, such as a family. The downsides are that these mortgages tend to be more expensive and often entail signing on students or non professionals as tenants, meaning income may be seasonal and inconsistent. Although a stereotype that doesn’t encompass everybody, student tenants are regularly known to leave the property in a less favourable state, requiring further expendable income for repairs.
With the knowledge being a mortgage broker, we can answer any questions you may have keeping the technical jargon to a minimum. We have dealt with a number of HMO mortgage before so we can provide the guidance and support you need throughout the HMO mortgage.
We're available to speak to at times that better suit you and your schedule.
We don't ask for any payments upfront, we're only paid on mortgage success.
There will be a familiar face through every step of your HMO Mortgage application.
HMO Mortgages can be quite tricky to work with. We'll help you navigate the mortgage process.
Our team will recommend the most suitable insurance for your personal and financial circumstances should you become ill and unable to work.
We'll take a look at our panel to find the best mortgage deal for you, with favourable rates.
We've come across all kinds of mortgage scenarios over the years. We'll use the knowledge we've gained over the years to help you with your HMO Mortgage.
Our team will help overcome any hurdles you face along the way, like issues with property surveys and down valuations.
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Derek
They were great when handling our mortgage application even though it was a bit different to the normal one. Highly recommended
Michelle
The team at UK Moneyman have been excellent, really informative, providing sound advice with no judgement and supporting the best possible way forward for myself. I would definitely use the team again, they’ve made the whole process simple and...
Lawrence
Great company to work with, very helpful and excellent communication. Chris and Jo did a great job with our application. I highly recommend.
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Gillian
Having dealt with Leo previously I knew I would be getting a brilliant service and a good deal.
Karen
Very helpful.Quick response to any questions or concerns. Selected the right product to meet our requirements.
Stephen
We went to the Moneyman to start with regarding a new mortgage only which went really smoothly and everything was explained in simple terms at our request Malcom made it feel at ease . Once i had the confidence with them we asked them to help with...
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Jenna was very quick to sort out my mortgage, it was very straight forward and easy.
John
UK money man are excellent and have walked me through every stage of both the initial mortgage process and the remortgage two years later, couldn’t recommend them enough!!
Antonia
Matt Collinson and Meghan Robinson were absolutely wonderful. Provided updates, always avaliable and dealt with our mortgage so quickly! We had a mortgage offer within 2 and a half days and they sorted it all. Absolutely over the moon and would...
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So fast and brilliant services which surprised us and the agent by receiving the mortgage offer less than one week. Malcolm is very responsive
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We used UK Moneyman for our first mortgage back in 2021. When it came to remortgaging, we confidently used their services again. Chris has been fantastic at reassuring us around the changes in interest rates and explaining everything clearly. Meghan...
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The whole team at UK Moneyman have been so friendly and helpful, whilst also providing an excellent service and securing me a mortgage offer really quickly. Even when there were questions and changes, they went over and above to help and always came...
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Malcolm and Meghan did a great job with my application which due to a chain breaking down had to be done for two different properties, was kept informed throughout and they made me aware of changes in the market i didn't know about. Would happily...
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Matt and Wendy worked tirelessly and creatively to reach a great mortgage outcome for me in what was a less than straightforward journey. The commitment and advocacy was fist class and communication, always excellent. Matt really earned his broker...
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I honestly couldn't have asked for a better service with UK Moneyman! I have been working with Charlie and Wendy! They have been SO helpful throughout the whole process and so supportive, never a hassle for them when I've been bombarding them with...