The Mortgage Cafe

Buy to Let Mortgage for HMOs with up to 5 Letting Rooms

HMO Mortgages Suitable up to 5 Letting Rooms

We have a number of lenders, who will consider properties with up to 5 rooms let. Some of these lenders will require all tenants to be on 1x single AST agreement. While this is fine for students, it is not suitable for working professionals, who will want their own individual tenancy agreement. Other lenders will require that there are no locks on internal doors. Most tenants will certainly want to lock their room securely. We can assist you by selecting the most appropriate lender and mortgage for any property with any number of rooms let. Properties will normally have shared kitchen and bathroom facilities, although en-suites are allowed by all lenders. Multiple bathrooms are allowed, but most lenders will not lend for properties that have more than 1x kitchen. Some mortgages are limited to properties with up to 5x letting rooms and a maximum of 75% LTV. However, other mortgages allow up to 8x letting rooms and are available up to 85% of property purchase price (or property value for remortgages). Interest only is always available and applicants do not need letting experience with some of these lenders.

Situational Profile

For applicants wanting to buy or remortgage the smaller HMO property with, or without an HMO licence. Some local authorities will want a property to be licensed if there is to be any multiple letting involved. Others will only require an HMO licence if the property has 3 or more storeys and 5 or more individual tenants

  • Student share houses up to 5 letting rooms
  • With or without an HMO licence
  • Applicants should be homeowners or an existing Buy To Let

Types of Property

Properties with up to 5x letting rooms (can be more with some lenders). Properties must only have 1x kitchen, Tenants should jointly sign 1x AST tenancy agreement unless otherwise shown. Properties with, or without an HMO licence, usually students tenants, but not necessarily. Lending is available for anywhere in the UK

  • Single residential Buy To Let houses for multiple letting
  • Houses of Multiple Occupation (HMO)
  • Tenants can be students, or working professionals
  • Single AST jointly signed by tenants sharing agreements
  • Property in England, Scotland, Wales and Northern Ireland
  • Shared kitchen and bathroom facilities
  • Up to 5 letting rooms per property in most cases

Applicant Profile

Applicants should have owned a main residence, or an investment (BTL or HMO) property for at least 6 months prior to making an application. Applicants should be able to demonstrate a good level of personal income. A clean credit history is required

  • UK Passport or UK Driving Licence for ID
  • Evidence of deposit funds (bank statement)
  • Able to provide proof of income; employed, self employed
  • Clean credit history
  • Applicants can be employed, self employed, retired
  • Previous letting experience is normally required
  • Some mortgages have no minimum personal income
  • Applicants should be a homeowner, or have owned a Buy To Let investment property for at least 6mths

General Lending Criteria

Mortgages are available for purchase, or remortgage up to 85% of purchase price, or property value. Some mortgages have no lender’s arrangement fee. Options with no early repayment charge (ERC).

  • Purchases or remortgage
  • Interest only or capital + interest repayment
  • Properties located in England, Scotland, Wales and Ireland
  • Up to 85% LTV
  • Capital raising for any legal purpose
  • Limited company applications accepted
  • Options with no early repayment charges

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