Buy to Let HMO Mortgages

Edited: February 2026 

Buy to let HMO mortgages are designed specifically for Houses in Multiple Occupation. If you plan to let a property to three or more unrelated tenants who share facilities, you will usually need a specialist HMO mortgage rather than a standard buy to let product.

At GPS Financial, we help landlords and property investors secure the right HMO mortgage for their plans. We arrange buy to let HMO mortgages for clients across the UK and manage the process from initial review through to completion, so nothing important gets missed.

If you are exploring other options alongside HMOs, you can view our wider Buy to Let Mortgage services here

What Is a Buy to Let HMO Mortgage?

A buy to let HMO mortgage is similar in structure to a standard buy to let mortgage, but it is designed to reflect the additional complexity and risk associated with HMOs.

Because HMOs involve multiple tenants, higher turnover, and specific licensing and safety requirements, lenders apply different criteria. For this reason, HMO mortgages are typically only available through specialist lenders with experience in this type of property.

How Buy to Let HMO Mortgages Work

HMO mortgages are usually arranged on an interest only basis and secured against the property.

Affordability is assessed primarily on rental income rather than personal income. In most cases, the expected rental income must exceed the mortgage payment by at least 125 percent, although this can vary depending on the lender, loan size, and interest rate used for stress testing.

Lenders will also review factors such as:

• The property layout and configuration
  • The number of bedrooms and occupants
  • Local demand for HMO accommodation
  • Licensing and compliance requirements

If you are unsure whether your property meets HMO criteria, we can assess this early on and guide you before you commit to a lender or purchase.

When You Need an HMO Buy to Let Mortgage

You will usually need a buy to let HMO mortgage if the property will be let to three or more unrelated tenants who share facilities such as a kitchen or bathroom.

Using a standard buy to let mortgage for an HMO can breach your mortgage terms. In some cases, this may allow the lender to withdraw or recall the loan, which is not a situation any landlord wants to be in.

Using the correct product from the outset protects you and keeps your investment on track.