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, 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.
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 HMO mortgage lenders that are very active in providing HMO mortgages.
This choice of 7 HMO mortgage 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 only selected brokers have access to them.
With access to both the buy to let HMO mortgage lenders as well as the HMO commercial mortgage lenders, we can 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 sufficient for the number of tenants.
Please note: HMO’s are not to be confused with bedsits. Bedsit properties rented rooms in houses which share a bathroom with other tenants but has its own kitchen facilities.
Key Information and Benefits
Key Information and Benefits
- Speak to a consultant today for a free personal consultation and they will handle your case from enquiry to completion
- Flexible and creative financing solutions to meet your needs from our panel of 100+ lenders
- Loans/mortgages from £100,000 to £20 million (smaller loans only considered in exceptional circumstances)
- Market leading interest rates. The actual interest rate will depend on the risk, quality of the credit profile and the purpose of the loan/mortgage
- Lowest overall cost of financing will be considered for your individual case
- All incomes levels, evidence of income, credit histories and funding requirements will be considered
- High loan to values available 100%+ funding can be achieved with additional security or by introducing more than one lender to a case
- Financing terms can be short term (a few months) or long term (many years) to suit your needs.