How is rental income calculated for an HMO?

Specialist lenders generally use actual or estimated room-by-room rental income, then apply their stress test. This is typically more generous than a single-tenancy assessment, which is why HMOs can support larger loans relative to purchase price.

Do I need to already be a landlord?

Some specialist lenders require existing buy-to-let experience. Others will lend to first-time HMO landlords who already own their own home. I'll tell you exactly which route applies to your situation.

HMO Mortgages

Higher yield buy-to-let. Specialist lenders.

HMO mortgages need a different lender to standard buy-to-let. I have access to the specialist panel that understands HMO rental calculations and licensing requirements.

Book a no-obligation call

Initial consultations are completely free of charge. There's no obligation to proceed and our broker fee of £495 will only become payable if we proceed to a full application.

Your home may be repossessed if you do not keep up repayments on your mortgage.

In brief

Standard HMO (3–6 occupants) and large HMO (7+)
Licensed and unlicensed HMO properties
Higher rental yield modelling
Ltd Co HMO purchasing
Refurbishment and light development finance

The Financial Conduct Authority does not regulate some forms of Buy to Lets. Your home/property may be repossessed if you do not keep up repayments on your mortgage.

Common questions

Questions about HMO Mortgages

Standard buy-to-let lenders won't lend on an HMO, they generally require single occupancy lettings. Specialist HMO lenders assess rental income differently (per room rather than single tenancy) and have higher minimum experience requirements.

Talk to me before you decide anything.

Free call, no commitment. I'll give you the honest picture and a recommendation that's right for you.

Book a no-obligation call

Initial consultations are completely free of charge. There's no obligation to proceed and our broker fee of £495 will only become payable if we proceed to a full application.