HMO Mortgages

For Remortgaging & Buying Investment Property In The UK

HMO Mortgages

Clifton private finance

We can source mortgage finance for houses in multiple occupation in the UK: from £50,000

Expert advice on your finance options if you own houses in multiple occupation.
Our HMO property buy to let mortgage service provides:
  • HMO Finance from £50,000
  • Advice on finance products available for HMO lending
  • First-time landlords welcome
  • Licensed and unlicensed HMOs
  • Expertise in dealing with buy to let portfolios, Limited companies using retained profits
  • Funding solutions for portfolios with no limit on number of properties
  • Landlord light & heavy refurbishment finance available on attractive terms
  • Interest-only lending terms available
  • Individuals, limited companies, LLps, partnerships, trusts and pension schemes
  • Refurbishment & short term finance options up to 100% LTV with additional security

Buy To Let

Up to £1 Million (Remortgage)

3.59% APR

2 Year Tracker (to 31/03/25)

Subsequent rate 7.49%

LTV - 65%

APRC 6.7%*

Product fee £5,400 

Free Valuation & Legals

Early Redemption Charges - Yes

As of 24th January 2023

Buy To Let

Up to £1 Million (Remortgage)

4.63% APR

5 Year Fixed (to 31/3/2028)

Subsequent rate 6.90%

LTV - 60%

APRC 6.9%*

Product Fee £3,999

Early Redemption Charges - Yes

As of 24th January 2023

Buy & Refurb

1 to 12 Months

0.43% pm

1 to 12 months

Purchase & refurb

LTV - 60%

Buying & Renovating


Auction Purchase

As at 24th January 2023

Contact Us

Thank You for your interest - please complete the form below and a member of our team will be in contact.

Through our specialist market knowledge we can deliver enhanced, bespoke or exclusive terms based on your requirements.  
Call our HMO mortgage team on  0203 900 4322 to discuss your requirements or book a call-back below:

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HMO Mortgage Broker Service

First-time investors and experienced single-tenant landlords may be attracted by the attractive returns offered by a property with multiple tenants – also known as a multi-let, or a house in multiple occupancy (HMO).

HMOs range from a house-share arranged by a group of friends, to a house or flat provided for a group of students sharing, to high-spec accommodation for young professionals or low-cost housing for shift workers or housing benefit recipients.

The projected annual returns of 4-5% for a straightforward buy-to-let (BTL) can be doubled for a multiple-occupancy letting. Which is more than enough to persuade many landlords to tackle the additional licensing and finance requirements. But the finance issues may be more complex and require specialist advice.

What is an HMO?

A house in multiple occupation (HMO) is any rental property with shared facilities (such as bathrooms and kitchens) which is rented out to three or more people who aren’t part of a single "household" (usually a family). They’re what’s often known as a "house share".

Many people refer to an HMO as a Large HMO, which is a rental property with five or more tenants, where the tenants share toilet, bathroom or kitchen facilities.  

Do I need a licence to run an HMO?

You don’t need a licence to run a standard HMO with four or fewer occupants. Landlords need an HMO licence to operate a Large HMO, which will usually be valid for five years - which is why they are sometimes referred to as Licenced HMOs.

Smaller HMOs, which don't need to be licensed, have commonly been referred to as "unlicensed HMOs," but the term can seem to suggest that they are somehow illegal or fly-by-night. Some owners, local authorities and lenders refer to these smaller HMOs as multi-lets, "HMOs Not Required To Be Licensed," or "non-licensable HMOs".

The different mortgage lenders for these specialist buy-to-let mortgages may have different definitions and requirements for their HMO lending.

Tenants to target for HMOs

With the cost of buying a home still rising, the demand for affordable rented accommodation remains very strong. Local listing sites (Gumtree, Zoopla, Rightmove…) will help first-time landlords to assess the strength of demand from prospective tenants:

What kind of tenancy agreement do I need to run an HMO?

Landlords can manage their HMO property by setting up one "joint and severally liable" agreement covering all the tenants or using an individual contract for each tenant.

Joint contracts

Individual contracts

How profitable is an HMO?

Prospective landlords may see HMO properties advertised for sale offering “100%+ gross yields,” but you’ll need to be aware that the costs of setting up and running HMO properties are considerable, so the key figure is net yield.

HMO landlord costs include:

Profits may be maximised by running the property through a limited company structure: you’ll need advice from an accountant / financial adviser.

How to finance an HMO

Nearly 40 lenders operating in the buy-to-let mortgage market, offering approximately 1,500 different mortgage products. Many can only be accessed by a broker engaged to act on your behalf.

See HMO Mortgages - How To Finance An HMO Property

What kind of finance do you need?

Lenders will have different criteria for the number of rooms in an HMO they will consider, and how they calculate the value of the property (usually as a combination of Bricks & Mortar and Investment value).

HMO borrowing stress test calculation

Lenders commonly apply a slightly higher “interest coverage ratio” (currently around 1.7%) to HMO mortgages, compared with standard BTL mortgages (usually 1.25%), to cover the perceived high risk of a multi-tenanted property.

An experienced broker will be able to identify the most appropriate – and cheapest – finance for you in this specialised area of the buy-to-let market and will package your application to ensure it meets the lender's criteria. 

Call Clifton Private Finance

One of our specialist HMO mortgage advisors will be happy to discuss your requirements with you:

Call us on 0203 900 4322 to discuss your requirements or request a call-back:

Book Consultation »


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