The Mortgage Cafe

Mortgages Suitable for Student Let HMOs

Student Letting Accommodation, Share House or Multi Tenancies


Suitable Mortgages for Student Lets

Student let HMO accommodation is widely accepted by the majority of mortgage lenders. This is the most common use for HMO properties in the UK. Tenancy agreements will be on an Assured Shorthold Tenancy basis and normally all students will sign the same tenancy agreement.

This type of tenancy is classed as a ‘joint and several’ tenancy agreement, because if one student leaves, the other remaining students will still be responsible for the whole rent. Contact us to discuss your HMO mortgage for student letting.


Applicant Profile

Applicants should be homeowners, unless they are high net worth individuals. Applicants must be employed, self employed, or retired and be able to prove their income. No minimum personal income requirement with some lenders. Mortgages available for existing landlords who have no proof of income. A clean credit history is required, although some minor and historic credit problems can be accepted.

  • UK citizen with a passport or UK driving license for ID
  • Evidence of deposit funds (bank statement)
  • Ideally able to provide proof of earned or pension income
  • Clean credit history
  • 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

Situational Profile

For applicants wishing to buy a property for students to rent rooms and share all facilities. The tenancy agreement will normally cover the whole academic year. Available for any size of property and location.

  • Student tenants
  • HMO or non-HMO student share house accommodation with shared kitchen and bathroom facilities
  • Lending in all university city areas

General Lending Criteria

Maximum loans to 85% LTV. Students will usually sign 1x joint tenancy agreement, but some lenders will accept either a single, or jointly signed agreement, or multiple individually signed agreements

  • Purchases or remortgage
  • Interest only or capital + interest repayment
  • Evidence of deposit funds required
  • Evidence of existing UK property
  • Share house with joint tenancy agreement accepted

Types of Property

Properties with up to 20 letting rooms are acceptable, with or without an HMO licence. Mortgages are available for properties with up to 5 letting rooms at preferential interest rates. Properties above some commercial premises may be acceptable. Properties must only have 1x kitchen unless specified otherwise.

  • Houses of Multiple Occupation (HMO)
  • 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
  • Cooking facilities in rooms 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

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