HMO Mortgages for Expats
A house in multiple occupation – several unrelated tenants under one roof, each with their own tenancy – can generate rental yields well above a standard single-let, which is exactly why so many landlords eventually end up asking us about one. It’s also why HMO lending is a genuinely specialist part of the mortgage market: valuations work differently, licensing requirements vary by council, and a fair number of lenders simply won’t touch them.
We’ve arranged HMO finance for expat landlords since 2008, from small 4-bed shares through to larger multi-unit blocks, working with clients from our UK, Hong Kong and Kuala Lumpur offices.
What lenders assess differently on HMOs
Rather than one rent figure, lenders look at total achievable rent across all rooms, room sizes, and how the property is licensed with the local council – mandatory licensing kicks in for most five-bed-plus HMOs, but plenty of councils run additional or selective licensing schemes on top of that, so what’s required varies genuinely street by street.
Valuations for HMOs also tend to cost more and take longer than a standard buy-to-let, since the surveyor needs to assess room-by-room rental value rather than the property as a single unit.
Ownership and scale
- Small HMOs up to six bedrooms, and larger or more complex properties beyond that
- Licensed and unlicensed HMOs, though licensing status will affect which lenders are interested
- Personal name or limited company/SPV ownership
- Refinancing an existing HMO portfolio, not just new purchases
If you’re converting a property into an HMO or building one from scratch rather than buying a ready-made one, our HMO Design & Build Finance page covers the staged funding process for that instead.
Our fees
£295 application fee, 1% completion fee.
Frequently Asked Questions
How many bedrooms count as an HMO?
Generally three or more unrelated tenants sharing facilities, though local licensing rules can differ from the national mortgage-lending definition.
Do I need a licence before I apply for finance?
Not always at application stage, but most lenders will want to see licensing sorted, or a clear plan to obtain one, before completion.
Can I buy an HMO through a limited company?
Yes – many landlords do, and we regularly arrange this alongside standard HMO lending.
Will I get a better rate on a licensed HMO?
Often, yes, since licensed properties represent lower regulatory risk to a lender.
How long does an HMO purchase or remortgage take?
Budget 8-12 weeks given the more detailed valuation process, sometimes longer for larger or unlicensed properties.
Get in touch with details of the property, room count and current licensing status, and we’ll tell you which lenders are realistic.
