How Much Deposit Do You Need for Houses in Multiple Occupation (HMO) Mortgages?

Understanding Deposit Requirements for HMO Mortgages

When planning to buy or refinance a House in Multiple Occupation (HMO), one of the first questions most landlords ask is how much deposit they’ll need. The answer can vary depending on the lender, your level of experience, and the property type – but in most cases, HMO mortgages require a larger deposit than standard buy-to-let loans.

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Typical HMO Mortgage Deposit Range

Typically, HMO mortgages require a deposit ranging from 20% to 35% of the property’s value (80%-65% LTV). The exact amount depends on factors such as the number of tenants, the rental income potential, and your track record as a landlord.
A smaller deposit is possible, but lenders usually balance this by charging a higher interest rate to offset the increased risk.

For those aiming for a lower rate or more competitive loan terms, contributing a larger deposit could make the difference.

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Expert Support from Advocate Finance

Understanding how much deposit you need for an HMO mortgage is just one step in the finance process. Working with a broker experienced in HMO lending ensures you’re matched with lenders who understand your property type, portfolio, and future goals.

At Advocate Finance, our team specialises in securing competitive HMO mortgage deals and helping landlords plan for long-term growth.

Learn more: HMO Mortgages

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