Cashback Remortgages · Buy-to-let
HMO Finance Explained
A house in multiple occupation (HMO) is let to several unrelated tenants sharing facilities. HMO finance is a specialist area with its own criteria.
Specialist criteria
Fewer lenders offer HMO mortgages, and they may require landlord experience, a minimum value or a company structure. Valuations can be based on rental income rather than comparable sales.
Lender definitions of an HMO vary.
Licensing and planning
Many HMOs need a council licence, and larger conversions may need planning consent, sometimes affected by Article 4 directions. Check locally before committing.
Sources and further reading
General mortgage information, not a personal recommendation. Lender criteria and scheme rules can change. Ask an adviser about your circumstances and a solicitor or tax adviser about legal or tax questions. Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let mortgages are not regulated by the FCA.
Discuss the next step for your mortgage
Understand your options before you make a decision.