Which type of HMO is yours?

Houses in multiple occupation (HMO’s) fall into two distinct segments from the perspective of a mortgage lender:

• HMO properties that require an HMO licence granted by the local council (discussed on this page). Generally speaking this relates to properties that are let to 5 or more tenants and they form 2 or more households over 3 or more storeys and they share a bathroom, kitchen and toilet.
• HMO properties that DO NOT require a HMO licence. Please visit our dedicated page on these properties. These properties are generally let to 3 or more tenants and they form 2 or more households and share a bathroom, kitchen and toilet

You will see in the definitions above that the main criteria are the number of tenants and the number of floors in the property. It is important to know that although the above definitions are correct, that each Council has the authority to change them. We have come across a council that requires HMO  licenses for properties with as few as 3 tenants and only 2 floors.

HMO mortgages for properties that require an HMO licence

You can now gain access to the best solutions in the market. We are experts in arranging mortgages for  HMO properties that require a licence and have a choice of 7 lenders that are very active in lending HMO mortgages.

This choice of 7 lenders allows us to arrange HMO mortgages from 3 rooms up to an unlimited number of rooms  and at least 4 of these lenders are on restricted panels which means that only selected brokers have access to them.

With access to both the buy to let HMO lenders as well as the HMO commercial mortgage lenders, this allows us to provide you with the widest range of products currently available in the market. We can assist if you are a first time HMO landlord or a professional landlord with many HMO’s.

Operating an HMO brings benefits in terms of higher rental yields and income, but at the same time there is a responsibility under law to ensure the property meets requirements for:

• Fire safety – Smoke alarms, fire doors and fire escapes
• Amenities – The kitchen and bathroom facilities must be sufficent for the number of tenants
• Management – The HMO must be properly managed

Some of the HMO mortgage solutions available

• Mortgages for HMO properties with 3 to 40 rooms
• Access to lenders that will value the property on an investment basis and not a vacant possession basis
• The widest range of HMO mortgage lenders and products available in the market
• Interest rates from 3.50% above base rate
• 100% mortgages available with additional security
• 75% mortgages available without additional security
• Interest only and capital and interest mortgage available
• Financing terms from 3 to 30 years