The Mortgage Cafe

Buy to Let HMO Mortgages

Houses in Multiple Occupation and Residential Multi-Unit Rental Property

HMO Mortgage Highlights

  • Property refurbishment mortgages
  • Licensed or un-licensed HMOs
  • HMOs above retail premises
  • Student let property
  • All property types considered
  • Whole of market product selection
  • Vast industry experience over 25years in financial services
  • Free No Obligation Quotes

Do all HMOs Need a Licence?

Under updated legislation contained in the Housing Act 2004, other forms of shared housing such as student share houses will be classified as HMOs however not all housing will require mandatory HMO licencing.

Larger properties with 3 storeys or more and with 5 or more occupants will require a mandatory HMO licence. So while a property may fall under the definition for a HMO not all will require to be licenced as such, however it will still be subject to HMO legislation to ensure important matters concerning occupant safety are adhered to as well as being subject to the Housing Health and Safety Rating System (HHRSS).

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Common HMO Buy to Let Mortgage Types

  • A house share or flat share
  • Student accommodation
  • A converted house split into bedsits
  • A converted house with mixed accommodation types

Households Definition

For licensing purposes a household refers to members of the same family living together and couples who live together (whether or not they are married). A group of friends sharing does not constitute a single household.

What is the Definition of a HMO

For premises to be defined as a HMO there must be at least three unrelated persons involved who do not form a single household. Where there are two or more separate households residing within the property as their main residence then the property will be an HMO. All of the occupiers occupy the property do so on the basis that is is their main residence and the accommodation used for residential purposes only.

HMO Mortgage Lenders

We have access to the whole of the market to provide landlords mortgages for properties let as HMOs. Lenders we utilise range from mainstream Buy-to-let mortgage lenders to Commercial mortgage lenders offering finance for large HMO properties. We also arrange short-term and mortgage finance for converting existing dwellings into HMOs or converting property into self-contained flats.


Mixed Accommodation Converted Building HMOs

Many landlords have converted large single dwellings into HMO type accommodation for increased rental yields. Often these may comprise a mix of self-contained flats and bedsits maybe other non-self-contained letting units and will be subject to HMO legislation. Converted buildings comprising only self-contained flats, while having no shared facilities other than stairways and common access areas with the other units will not usually fall under the same legislation. Converted buildings operated as HMOs should provide shared kitchens, bathrooms and laundry facilities.

Regional Lending

Lending throughout England, Scotland and Wales. We can also arrange limited HMO mortgages for properties located in Northern Ireland.

Multi-Let Property

When there is more than one household renting a property, lenders will regard this as a ‘multi-let’ property and this will dictate the type of mortgage they can offer.

Large HMO Definition

A house in multiple occupation is a property rented by at least 3 people who are not from 1 ‘household’ (eg a family) but share facilities like the bathroom and kitchen. It’s sometimes called a ‘house share’.

You must have a licence if you’re renting out a large HMO. Your property is defined as a large HMO if all of the following apply:

  • 5 or more people who form more than 1 household
  • Tenants share toilet and bathroom facilities plus one or more kitchens

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