HMO refers to a “house in multiple occupation”, typically rented out room by room to individual
tenants. HMO mortgages are a specific commercial loan to suit this type of property.
HMOs are generally occupied by more than three tenants, not forming a household, who will share kitchen, bathroom and toilet facilities in the house. Each tenant will pay the landlord their rent individually. HMOs are usually restricted in their operation under planning and local authority regulations.
Mortgages for HMO properties are available, but are not widely available and are offered by specialist lenders who understand this market niche.
Typically, HMO mortgages will be arranged via a limited company that owns the property or
properties. GPS Financial has expertise in this area of specialist lending, having access to
niche lenders specifically providing HMO mortgage funding. HMO mortgages can support a range of
HMO properties are attractive to landlords, as they can deliver strong rental yields.
However, the market for mortgages to fund HMOs has become increasingly difficult, as lenders
drew back from a perceived risky sector.
GPS Financial has long experience in arranging HMO funding, mortgages and remortgages, with access to specialist lenders offering:
Once you have identified the project and roughly worked out viability, costs, end value
profit margin, get in touch on 02922 677 725, or fill out the form in the contact page.
It doesn't matter if you don't already own the
We will then ask you lots of questions, (known as a fact find), to get as much information about the development as possible. This will allow us to appraise your project and give you an honest opinion as to whether we can help, i.e. we'll let you know if there are any lenders who might be willing to provide the necessary finance.