Houses in Multiple Occupation (HMOs) are a powerful way to maximise rental income from a single property, but when it comes to mortgages, they fall firmly into specialist territory.
At Mortgage Knight, we help new and seasoned landlords access HMO mortgage deals that match their property strategy—whether you’re buying, refinancing, refurbishing, or expanding your portfolio.
An HMO mortgage is a specialist buy-to-let mortgage designed for properties that are let out to three or more unrelated tenants, typically on a room-by-room basis. These properties are subject to additional licensing and regulations, and many mainstream lenders won’t touch them.
That’s why we work with lenders who understand HMO investing and offer tailored criteria, flexible terms, and fast underwriting.
In England & Wales, a property is generally considered an HMO if:
It becomes a large HMO if:
Local councils may have additional licensing rules, so always check your area.
| Feature | Typical Terms |
|---|---|
| Loan amount | £50,000 – £2 million+ |
| Deposit required | 20–25% (higher for larger or complex HMOs) |
| Accepted structures | Individuals, SPVs, LLPs |
| Tenancy types | ASTs, licences to occupy, corporate lets |
| Repayment | Interest-only or capital repayment |
| Rental calculation | Based on expected gross rental income |
| Licensing | Licensed & unlicensed accepted (case by case) |
Status: Mark was converting a 3-bed terraced house into a 5-bed HMO for students in Manchester.
Challenge: His existing lender wouldn’t lend on HMOs, and he needed a lender comfortable with first-time HMO landlords.
Solution: We secured a 75% LTV mortgage from a specialist lender that accepted unlicensed HMOs under refurbishment.
Outcome: Mark completed the refurb and began tenancies within 2 months, achieving 9.2% gross yield.
Status: Rina was expanding her portfolio via a limited company and found a licensed 6-bed HMO generating strong rental income.
Challenge: She needed a lender happy with SPVs, HMO licensing, and existing tenancy agreements.
Solution: We arranged a limited company HMO mortgage at 70% LTV with no minimum income requirement.
Outcome: Rina completed in 6 weeks and added £22,000 annual rental income to her portfolio.
Status: Dave owned a 9-bed licensable HMO and wanted to refinance to raise capital for another project.
Solution: We secured a £425,000 refinance using a lender specialising in large HMOs with professional tenants.
Outcome: Dave raised £110,000 equity and used it as the deposit on his next investment.
A: Some lenders require prior BTL experience, but we have access to others who will accept first-time landlords, especially if the property is managed by an agent.
A: Not necessarily. Some lenders will accept applications before licensing, provided one is applied for. Others only lend on already licensed properties.
A: Yes. Most HMO landlords use SPVs for tax reasons, and we work with lenders who specialise in Ltd Co BTL lending.
A: Some lenders have a minimum income requirement, usually around £25k+, but others assess solely on rental income.
A: Yes. Many HMO lenders allow individual room lets, ASTs, and licensed properties with internal locks.
