HMO Mortgages & Funding

HMOs (House in Multiple Occupation) are still financeable despite current difficulties in the mortgage markets. Several portfolio investors choose to have HMO's in their portfolio as yields are typically much higher than traditional houses or flats. Funding of 70% of value is readily available from specialist commercial lenders and 75% funding is also achievable for the right applicants.

Each loan is based on the 'PSPS' principals of lending criteria:

• Purpose of loan
• Serviceability
• Pedigree of applicants and
• Security

Up to 100% financing may also be available with additional security such as a second charge over other assets.

Houses in Multiple Occupation are subject to licensing and additional regulations please see our Legislation page for more details and their saleability is often limited to investors.

Accordingly, most buy to let lenders shy away from offering mortgages on HMO's as they can be much harder to sell in comparison to other residential properties. Don't let this put you off considering them though. Our experts will help you to assess the risks, the returns and the finance ability so that you can make a balanced investment decision.