The Mortgage Cafe

HMO Mortgages for Older Applicants

HMO Mortgages Suitable for Applicants up to Age 70 at Application

The majority of lenders will require their mortgage to be repaid by age 75. This is quite restrictive for older property investors. We have therefore put together a panel of lenders who have higher maximum age limits at the end of the mortgage term. Some of these HMO mortgages have maximum ages of 80 and 85 at the end of the mortgage and some have no maximum age limit at all.

Types of Property

Properties with up to 20x letting rooms are acceptable, with or without an HMO licence. Properties arranged as multiple self contained flats in one freehold or leasehold title, are also acceptable. Flats above some types of commercial premises may be acceptable.

  • Houses of Multiple Occupation (HMO)
  • Tenants can be students, or working professionals
  • HMOs arranged as flats in one title
  • Single AST and multiple AST tenancy agreements accepted
  • Property in England, Scotland and Wales
  • Properties with or without an HMO Licence
  • Accommodation above commercial premises considered
  • En-suite facilities in rooms are accepted
  • Shared kitchen and bathroom facilities accepted
  • HMOs with up to 20 letting units accepted
  • Mixed unit accommodation of flats, studios, bedsits not exceeding 20 units within title
  • Some commercial and semi-commercial properties considered

Situational Profile

For retired applicants, or those who are near retirement age, wishing to buy an HMO property as an investment for income, or capital growth, or both.

  • Retired Applicants
  • Applicants over the age of 60 looking for a long-term mortgage
  • No maximum age limit

Applicant Profile

Applicants must be homeowners and be able to prove their income, whether pension income or earned income via employment, or self employment. A clean credit history is required, although some minor and historic credit problems can be accepted by some lenders.

  • UK citizen with UK passport & driving licence as proof of ID
  • Evidence of deposit funds ( Bank statement )
  • Proof of income required in most cases
  • Clean credit history not always required
  • Some minor and historic adverse credit can be considered
  • Applicants can be employed, self employed, or retired
  • UK Bank account holder
  • Previous letting experience not always required

General Lending Criteria

Mortgages available for purchase or remortgage, up to 85% loan to value with maximum age 85, or 65% loan to value with no maximum age at end of mortgage, subject to maximum age 70 at application. Larger HMO properties, maximum age 80 at end of mortgage, maximum age 74 at application.

  • No maximum age at end of mortgage term (65% LTV)
  • Larger HMO’s maximum age 80 at end of mortgage
  • Purchases or remortgage
  • Interest only or capital + interest repayment mortgage
  • Full proof of applicants income required
  • Evidence of deposit funds required
  • Evidence of existing UK investment property

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