HMO Mortgages
Houses in Multiple Occupation (HMO) mortgages are specifically for experienced property investors who wish to maximise rental yield from residential property.
Request a Call BackHMO Mortgages for Property Investors
Navigating the HMO mortgage landscape? Get ahead with Unique Property Finance - your dynamic HMO mortgage broker.
Why us? Because every day, we sift through a vast array of HMO mortgages, ensuring that you’re matched with the very best option, tailored just for you. Whether you're seeking a Ltd Company HMO mortgage or looking to refinance a multi-unit portfolio, our expertise and experience, sourcing and brokering HMO mortgages means you are in safe hands.
And we're not just about expertise and experience – we're about speed too. Picture this: a mortgage decision in principle in 24 hours or even less. Thanks to our advanced mortgage portal software and relationships with specialist HMO mortgage lenders, we can provide swift decisions, helping you strategise with confidence and clarity.
At Unique Property Finance we are committed to the highest level of customer service and speed which gives us the edge on most of our competitors. From your initial contact you will deal with a qualified, experienced HMO mortgage broker who will guide you through every step of your HMO mortgage.
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More about HMO Mortgages
These mortgages were created specifically for property investors who want to purchase a high yielding property for the sole purpose of letting it out. Although they are similar to other mortgages, there will usually be other conditions attached and oftentimes HMO mortgages are only issued by more specialist lenders.
When deciding how much you can borrow, most lenders will consider the rent you will earn, as well as your own income. As a general guide, bearing in mind the semi-commercial nature of this type of loan, lenders will normally lend 75%-85% of the property valuation. It may also be possible to raise some or all of the deposit needed by considering a remortgage on an existing property.
A HMO mortgage is a specialist product and although some high street lenders can help, you are more likely to find a more competitive product via a specialist lender.
What is a HMO property? HMO or Houses in Multiple Occupation, refers to a type of property where at least three tenants, forming more than one household, share toilet, bathroom, or kitchen facilities. HMOs are unique in the housing world, differentiating from the standard single-family homes, as they typically house several separate individuals or groups under one roof.
Increasing popularity in HMO property Investment
The landscape of property investment in the UK is witnessing a significant shift, with an increasing number of investors turning their attention to Houses in Multiple Occupation (HMOs).
Recent Google search data underscores this trend, revealing a staggering 182% year-on-year increase in searches for 'HMO Investment', with average search volumes soaring from 210 in January 2022 to 480 by December 2023.
Speak to a HMO Mortgage Broker
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310 Friern Barnet Lane,
London N20 0LD
E: info@unique-finance.co.uk
P: 020 3645 4322
Give us a call or send an email to book an appointment. We endeavour to answer all enquiries within 24 hours on business days.
We are open from 9:30 am — 6:30 pm Monday - Thursday & 9:30 am — 5:00 pm Friday.
Frequently Asked Questions
What is classed as a HMO property?
According to the UK government, a house in multiple occupation (HMO) is a property rented out by at least 3 people who are not from 1 ‘household’ (for example a family) but share facilities like the bathroom and kitchen. It’s sometimes called a ‘house share’.
Are there any HMO property licensing requirements?
Yes, you must have a licence if you’re renting out a large HMO in England or Wales. Even if your property is smaller and rented to fewer people, you may still need a licence depending on the area. Check with your council.
What is the lending criteria for a HMO Mortgage?
Lending criteria for these HMO properties can vary from lender to lender. Typically being approved for a HMO mortgage means lenders will want to assess the property location, number of bedrooms, number of kitchens, landlord experience and HMO licencing. However all lenders have different criteria so we encourage you to get in touch with our HMO Mortgage Brokers to discuss.
Are HMO properties a good investment?
The appeal of HMOs lies in their potential for higher yields. With multiple tenants in one property, investors can often enjoy higher rental incomes when compared to standard buy to let property. Many property investors look to purchase HMO property in locations where there is a high demand for flexible and affordable housing.
Who is liable to pay council tax on a HMO property?
The owner of the property is liable to pay council tax on houses of multiple occupation. These are properties that are occupied by more than one household (or by one or more tenants each with their own tenancy agreement for part of the property).
How can a HMO mortgage broker help secure finance?
At Unique Property Finance our HMO mortgage brokers are experienced in securing competitive HMO mortgage products and buy to let loans that are bespoke to our client requirements. We can put into place HMO finance quickly so that you can secure your next HMO property investment.