HMO Mortgages

An HMO mortgage is a specialist buy to let mortgage specifically designed for landlords who want to rent out their property to individual tenants who aren't from one household.

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There are specialist HMO mortgage lenders out there who may be happy to offer you a buy to let agreement.

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.

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HMOs are typically rented by students and young professionals, who may not afford a property by themselves.

A 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.

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HMO Mortgage FAQs

Can you get a residential mortgage on an HMO?

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No, 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.

How much deposit do you need for an HMO?

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The minimum deposit varies from lender to lender but it would be no less than 25%.

What are the rules for HMO?

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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.

How are HMOs valued?

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Like any other mortgage, the lender will instruct a local independent valuer to confirm the property’s value.

Are HMO’s worth it?

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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.

Why choose a mortgage broker?

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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.

8 Reasons to choose UK Moneyman

Open all throughout the week, including weekends.

We're available to speak to at times that better suit you and your schedule.

Free HMO Mortgage Appointment.

We don't ask for any payments upfront, we're only paid on mortgage success.

You'll deal with the same dedicated case manager throughout your process.

There will be a familiar face through every step of your HMO Mortgage application.

We work for you, building relationships with landlords.

HMO Mortgages can be quite tricky to work with. We'll help you navigate the mortgage process.

Jargon free insurance advice.

Our team will recommend the most suitable insurance for your personal and financial circumstances should you become ill and unable to work.

1000s of HMO Mortgage deals.

We'll take a look at our panel to find the best mortgage deal for you, with favourable rates.

We're experienced in dealing with HMO Mortgages.

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.

Your mortgage advisor will be with you every step of the way.

Our team will help overcome any hurdles you face along the way, like issues with property surveys and down valuations.

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We search 1000s of HMO mortgage deals

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UK Moneyman Limited is Registered in England, No. 6789312
Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

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