HMO Mortgages

HMO mortgages provide finance for purchasing or refinancing houses in multiple occupation, where three or more tenants from different households share facilities. They are designed for landlords and investors managing higher-yield properties with more complex requirements.

As an experienced HMO mortgage broker, Avid Finance offers clear advice and access to specialist lenders. Our team helps you compare products and secure a mortgage that fits your investment goals.

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Specialist HMO mortgage broker
Up to 80% LTV
Lowest rates from 3.68%
Fixed, variable and tracker rates
Instant credit decision
Easy application process

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What are HMO mortgages?

An HMO mortgage is a loan secured against a property rented out to multiple tenants on separate agreements. Because these properties carry higher yields and additional licensing requirements, lenders apply stricter criteria than for standard buy-to-let mortgages.

Buy to let HMO mortgages are used for new purchases, remortgages or refinancing existing HMO portfolios. Avid Finance connects you with HMO mortgage lenders who understand the sector and can offer products tailored to your plans.

All HMO properties

Loans for bedsits, shared housing, hostels, halls of residence.

Limited companies

All borrower types including limited companies and SPVs.

Fixed, variable and tracker rates

Rates and terms to suit your circumstances including 2, 5 and 10-year fixed.

Bridge loans for HMOs

Short-term finance to move quickly or fund refurbishment works.

How HMO mortgages work

The application process involves an assessment of the property, expected rental yield and licensing requirements. Lenders review your landlord experience, the property’s compliance with HMO standards, and the loan-to-value ratio before offering terms.

Deposit requirements are typically higher than standard buy-to-let products, and interest rates may vary depending on property size, tenant mix and location. Avid Finance manages the process, ensuring your application is packaged correctly and helping you compare HMO mortgage rates.

Specialist HMO mortgage broker

Free HMO mortgage assessment

Instant credit decision available

Easy application process

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Key facts

Loan Amount	£50,000 to £50 million
Loan Term	Loan terms up to 35 years
Loan-to-Value (LTV)	Up to 80% LTV
Rates	Initial rates from 3.68%
Repayment Types	Interest-only or capital repayment
Repayment Holidays	Capital repayment holidays available on selected loans
Security	First and second charge
Asset Types	All HMO types
Borrower Type	Sole trader or limited company
Region	England, Wales, Scotland and Northern Ireland

Client reviews

Henrik, Birmingham

The team at Avid Finance were able to arrange a bridge loan on a semi-commercial property within a week. Best service bar none.

Ross, Wandsworth

Avid Finance provided an exceptional personal service… the only firm I spoke to that I felt truly had my needs at the heart of the discussion.

Mandeep, Southall

I would strongly recommend Avid Finance for corporate/commercial deals. They have variety of products depending on our need and urgency.

HMO mortgages explained

Who can apply for an HMO mortgage?2025-09-25T10:28:17+00:00

Who can apply for an HMO mortgage?

Landlords and investors who plan to rent to multiple tenants in a single property can apply. Some lenders require prior landlord experience, while others will consider first-time applicants with strong support in place.

What properties qualify for an HMO mortgage?2025-09-25T10:28:24+00:00

What properties qualify for an HMO mortgage?

Any property with three or more tenants from separate households sharing facilities may qualify, though larger HMOs with five or more occupants usually require a licence.

Do I need an HMO licence before applying?2025-09-25T10:28:29+00:00

Do I need an HMO licence before applying?

Not always. Some lenders will consider applications where refurbishment or conversion is planned, provided there is a clear route to licensing.

How much deposit is required?2025-09-25T10:28:34+00:00

How much deposit is required?

Deposits typically range from 25–35% of the property’s value. Larger deposits often result in better rates and wider lender choice.

What are typical HMO mortgage rates?2025-09-25T10:28:43+00:00

What are typical HMO mortgage rates?

Rates vary depending on loan size, property type, location and borrower experience. Specialist advice helps identify the most competitive options for your circumstances.

Are HMO mortgages available for limited companies?2025-09-25T10:28:49+00:00

Are HMO mortgages available for limited companies?

Yes. Many landlords now purchase or hold HMOs through limited companies, and several lenders provide products specifically for this structure.

How do lenders assess affordability?2025-09-25T10:29:00+00:00

How do lenders assess affordability?

Affordability is based primarily on projected rental yield, with stress tests applied to ensure the rent covers mortgage payments by a safe margin.

Can I refinance an existing HMO with a new lender?2025-09-25T10:29:08+00:00

Can I refinance an existing HMO with a new lender?

Yes. Remortgaging allows landlords to switch to a better product, release equity, or restructure borrowing.

Is it harder to get an HMO mortgage than a standard buy to let?2025-09-25T10:29:13+00:00

Is it harder to get an HMO mortgage than a standard buy to let?

Yes, criteria are usually stricter due to licensing and management requirements. Working with an HMO mortgage specialist improves the chance of approval.

Why use a broker for HMO mortgages?2025-09-25T10:29:19+00:00

Why use a broker for HMO mortgages?

An HMO mortgage broker has access to specialist lenders, understands their requirements and ensures your application is structured to highlight your strengths.

Speak to an HMO mortgage specialist

Whether you’re buying your first HMO or refinancing an existing portfolio, our team can help. Avid Finance provides independent advice and connects you with lenders offering competitive HMO mortgages.

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