How to Get a Mortgage for HMO Property in the UK [2025 Guide]

Are you searching for a House in a Multiple Occupation (HMO)? If yes, then the first question that would come to your mind is: Can I get a mortgage for my HMO property in the UK? And the answer is yes! But it’s not as simple as it sounds. It’s different from the regular buy-to-let mortgage, which is why you need to read this blog and get an understanding of how an HMO mortgage works. We have also covered who gets qualified for it, what you need to submit, and what is expected by lenders. What Is an HMO Property?An HMO (House in Multiple Occupation) is a property rented out to at least three or more unrelated tenants, who share facilities such as a kitchen or bathroom. Examples include:Student housesProfessional house sharesProperties converted into multiple bedsitsBecause HMOs usually generate higher rental yields than standard buy‑to‑lets, they are extremely popular with landlords in the UK. However, lenders view them as higher risk, which is why HMO mortgages have stricter criteria.Can You Get a Mortgage for an HMO Property?Yes, you can, but you’ll need a specialist HMO mortgage like Cribs Estate. Not every high‑street bank offers them, and the requirements are more demanding than a standard buy‑to‑let. An HMO mortgage is specifically designed for properties with multiple tenants. The lender will assess not just your financial situation but also the property itself and your experience as a landlord.HMO Mortgage Eligibility CriteriaTo secure a mortgage for an HMO property, most UK lenders require:Larger deposits are usually between 25% and 40% of the property value.Many lenders prefer applicants who already own at least one buy‑to‑let property.Lenders will test whether rental income comfortably covers the mortgage repayments, often at 125%–145% of interest payments.If your property requires a licence (which most HMOs do), you’ll need proof that it meets local authority requirements.The HMO must comply with minimum room sizes, fire safety, and amenity standards.Key Differences Between HMO Mortgages and Standard Buy‑to‑LetMany first‑time HMO landlords are surprised by how different the mortgage process is compared to a single let. Key differences include:More money up front is required.Only specialist lenders deal with HMOs.The lender checks the property layout, compliance with HMO regulations, and your landlord history.Arrangement fees can be higher than standard buy‑to‑let mortgages.How Much Can You Borrow for an HMO?The amount you can borrow depends on the property value, your deposit, and expected rental income. For example:If an HMO is valued at £400,000 and the lender requires a 30% deposit, you’d need £120,000 upfront.The rental income must usually cover the mortgage at a “stress rate” of around 5.5% interest.This is why many landlords choose HMOs: the higher rental yields often meet lenders’ affordability checks more easily than single lets.Do You Need an HMO Licence to Get a Mortgage?Many UK councils require an HMO licence if your property has:5 or more tenants from different households, or3 or more storeysSome councils extend licensing rules to smaller HMOs. Lenders will usually want proof that you either have, or can obtain, the correct licence before releasing funds.How to Improve Your Chances of Getting an HMO MortgageOwning a single buy‑to‑let first makes approval easier.Aim for at least 30% if possible.Check local council requirements before applying.Not all lenders are visible on the high street.Why Invest in an HMO?Despite the stricter requirements, HMOs remain one of the most profitable forms of property investment in the UK. Benefits include:Multiple tenants mean more income streams.If one tenant leaves, others still cover part of the rent.With increasing rental costs, HMOs are popular with students and young professionals.How Cribs Estates Can Help You Secure an HMO MortgageAt Cribs Estates, we know how daunting the HMO mortgage market can feel. Many landlords find that mainstream lenders simply do not cater to their needs, and that is where we come in.Our experienced property experts can:Connect you with specialist HMO lenders.Advise you on deposit requirements, stress tests, and licensing obligations.Help you identify profitable HMO investment opportunities across the UK.Support you through the entire application process to maximise your chances of approval.If you are ready to take the next step into the rewarding world of HMOs, get in touch with Cribs Estates today and let us help you secure the right mortgage for your property investment journey.

Shared Accommodation London: How to Rent a Shared Flat

Finding affordable and convenient housing in London can feel a daunting task. So most people go for a shared accommodation as it offers a cost-effective solution, no matter if you're a student, young professional, intern, or newcomer. But if you need to understand what exactly is involved in shared accommodation in London and how to rent a shared flat confidently before taking any step, here’s your guide.What Is Shared Accommodation in London?Shared accommodation typically refers to renting a room in a flat or house where communal spaces, such as the kitchen, lounge, and bathroom, are shared among tenants. Unlike living in a studio, you share costs (rent, bills, internet) and benefit from sharing with other individuals and reduced expenses.Who chooses this:Studentswho aim to reduce rental costs.Young professionals who are looking for affordability and a social setting.Interns or temporary workers who want short-term, flexible options.New arrivals who need support with UK rental processes.Why Shared Accommodation Is IdealCost-EffectivenessSplitting rent and utilities can significantly reduce your monthly outlay, allowing you to live in London without overspending.Location AccessShared flats often appear in well-connected areas, such as Clapham, Camden, or Stratford, offering easy commutes and local amenities.Social EnvironmentSharing with housemates creates instant community, perfect for forging friendships, especially when you're new to the city.FlexibilityMany lettings allow shorter tenancies (e.g., six months), which is ideal if you’re still deciding on your long-term plans.How to Rent a Shared Flat in London: Step by Step1. Set Your BudgetDetermine your maximum monthly total, including rent, bills, and council tax. This helps narrow down realistic locations and types of accommodation.2. Choose Your AreaDepending on your lifestyle:Clapham, Brixton: lively social scenes with transport links.Tooting, Wembley: more affordable yet still well connected.Stratford, Canary Wharf: great for East London commuters.3. Search on Trusted PlatformsUse reputable sites and agents, like Cribs Estates, to access verified listings and avoid scams. Look for rooms described with details on furniture, utilities, transport links, and tenancy terms.4. Arrange ViewingsView properties early; popular flats tend to sell out quickly. Ask the agent about:Bills included?Tenancy length?Deposit amount?How are utilities split?Who pays Council Tax?5. Understand the Tenancy AgreementContract should include:Rent amount and due dateDeposit amount and protection schemeLength of tenancy and notice periodUtility responsibilities6. Move In & SettleOnce the deposit is paid and the contract signed, prepare to move in! Set clear expectations with your housemates regarding cleaning, bills, and the shared living environment.Avoid Common PitfallsCheck if bills are included; some places add council tax or internet separately.Ensure there’s ample space and the landlord follows HMO (House in Multiple Occupation) rules.Always get a signed tenancy agreement to protect your rights.Document the property’s condition to avoid disputes over damages.Areas to Consider for Shared AccommodationCamden: Great nightlife and transport, but slightly pricier.Stratford: Well-connected and ideal for East London commuters.Clapham/Brixton: Social hubs with good tube links.Tooting/Wembley: More affordable, yet accessible.Greenwich/Canary Wharf: Peaceful and perfect if you're working in the financial district.Why Choose Cribs Estates?Verified ListingsAll rooms and flats are accurately described, with no bait-and-switch or missing details.Expert SupportFrom viewing to move-in, our team ensures you have help with tenancy agreements, paperwork, and understanding rights.No Hidden FeesNo hidden charges. Rent, deposits, and administration fees are all clearly stated.Deposit ProtectionDeposits are secured per UK law (via DPS or similar), giving you peace of mind.Ongoing AssistanceEven after you move in, we’re here, whether it’s a repair request or tenancy question.Shared Accommodation London FAQs 1. Is it cheaper to rent a shared in London?Yes. Splitting bills commonly halves monthly living costs versus a solo flat.2. How long are tenancies?Typically six to twelve months. Shorter terms may be negotiated with Cribs Estates, depending on the landlord's flexibility.3. Are bills included?Some properties include all bills; others separate utilities. Always confirm before committing.4. Can I pick who I live with?You can meet housemates during viewings. Some flats welcome direct introductions; others have set tenancy groups.Ready to rent a shared flat in London?Shared accommodation in London offers affordability, social interaction, and access to desirable areas. However, the key is a smooth and transparent rental experience. That’s where Cribs Estates, we connect you to trusted listings, support your tenancy journey, and help you settle into your new London home.Browse our listings, contact our friendly team, and find the perfect room with Cribs Estates today. Your ideal flatshare awaits!Read More: property management company london

How Do You Calculate Property Yield? Guide for UK Investors

If you are planning to invest in property in the UK, you must understand how to calculate property yield. Many first-time investors feel overwhelmed by percentages and formulas for getting the yield, but calculating does not have to be complicated. With a straightforward approach, you can assess your potential returns whilst ensuring your investment decisions remain practical. What is Property Yield? Property yield is the percentage return you receive on your investment from rental income. It gives you the idea of your property’s earning potential relative to its value, allowing you to compare different properties or areas quickly. A higher yield often means better cash flow, but it is also important to consider factors such as maintenance costs, location demand, and long-term growth. Yield is a core metric for UK investors when building a property portfolio, providing clarity on whether a property is likely to meet their financial goals. Why Property Yield Matters for Investors Calculating property yield allows you to assess whether a rental property will deliver a satisfactory return. It helps you compare investment opportunities across different locations, property types, and market conditions. Yield calculations can also guide your decisions on rent pricing, potential maintenance needed, and even your exit strategy. In a competitive UK property market, knowing your yield helps you invest with confidence whilst avoiding purchases that may underperform. How to Calculate Property Yield: Step-by-Step There are two primary ways to calculate yield on a rental property: gross yield and net yield. Step 1: Calculating Gross Yield Gross yield is the simplest form of yield calculation. It shows your annual rental income as a percentage of the property’s purchase price. Formula:Annual Rental Income ÷ Property Purchase Price × 100 Example:If you purchase a property for £200,000 and expect to receive £12,000 in rent annually: £12,000 ÷ £200,000 = 0.060.06 × 100 = 6% Your gross yield is 6%. Gross yield is helpful for quick comparisons between properties, but it does not account for running costs, repairs, or void periods. Step 2: Calculating Net Yield Net yield gives you a clearer picture of your actual return after expenses, showing your rental income minus costs as a percentage of the property’s purchase price. Formula:(Annual Rental Income – Annual Expenses) ÷ Property Purchase Price × 100 The expenses may include letting agent fees, maintenance, insurance, ground rent, service charges, and an allowance for void periods. Example:Using the same £200,000 property with £12,000 annual rent and annual expenses of £2,000: (£12,000 – £2,000) = £10,000£10,000 ÷ £200,000 = 0.050.05 × 100 = 5% Your net yield is 5%. Whilst the net yield will always be lower than the gross yield, it offers a more accurate view of your property’s actual return. What is a Good Yield in the UK? A “good” yield varies by region, property type, and your investment strategy. In many UK areas, yields of 5-8% are considered healthy, whilst yields above 8% may be found in some high-demand rental markets or HMOs(Houses in Multiple Occupation). However, a high yield should not be your only focus. It is wise to balance yield with property condition, tenant demand, and long-term capital growth potential to ensure your investment remains sustainable. Factors That Affect Property Yield Your property yield can fluctuate based on several factors: Location: Rental demand and local market trends can impact achievable rent. Property Type: Flats, HMOs, and houses can yield differently based on tenant demand. Condition: A well-maintained property may command higher rent, improving yield. Management Costs: Letting agent fees and maintenance can reduce your net yield. Void Periods: Empty months lower your annual income, reducing your yield. Frequently Asked Questions About Calculating Property Yield 1. Do I need to calculate yield before buying a rental property?Yes, calculating yield helps you understand whether a property meets your investment goals before you commit financially. 2. Is gross or net yield more important?Gross yield is useful for quick comparisons, but net yield offers a clearer picture of your real return after expenses. 3. Does property yield guarantee profit?No, yield is only one part of property investment. You must also consider maintenance, tenant management, and potential capital growth. 4. Can yield change over time?Yes, yield can change due to rent increases, property value changes, or varying expenses. How Cribs Estate Can Help You Our team helps investors analyse potential purchases by calculating accurate gross and net yields, taking into account real market rental figures and local demand. We can guide you in comparing properties to find investments aligned with your goals, ensuring you understand what return you can realistically expect. Whether you are expanding your portfolio or looking for your first buy-to-let property, Cribs Estate provides clear advice and property management support so you can invest with confidence whilst maximising your returns.

How Do I Obtain An Energy Performance Certificate?

If you are preparing to sell or let your property in the UK, you will need an Energy Performance Certificate (EPC) before marketing your home. Many homeowners and landlords are unsure how to obtain this certificate, especially if it is their first time selling or managing a tenancy. But if you are aware beforehand, it will help you stay compliant whilst ensuring your property is ready for the market without unnecessary delays.What is an Energy Performance Certificate?An Energy Performance Certificate rates your property’s energy efficiency on a scale from A to G, with A being the most efficient. It shows potential buyers or tenants how much they might spend on energy and offers suggestions for improvements that could make the property cheaper to run. An EPC is required in the UK whenever you sell, build, or let out a property, ensuring transparency and compliance with legal requirements.Who Can Issue an EPC in the UK?Only accredited domestic energy assessors can issue an EPC. These assessors are qualified to inspect your property, checking your heating systems, insulation, and windows before calculating your property’s rating. Using a registered assessor ensures your EPC is valid and can be listed on the official Government EPC register, where it will be accessible during your sale or letting process.Steps to Obtain an Energy Performance CertificateObtaining an EPC in the UK is a clear process when you follow these straightforward steps:1. Find an Accredited Energy AssessorSearch for a qualified assessor using the UK Government EPC Register. Enter your postcode to find local professionals who are licensed to carry out the assessment and issue your certificate.2. Book Your EPC AssessmentOnce you have chosen an assessor, arrange a convenient date for them to visit your property. They will let you know what access they require during the inspection and answer any questions you may have about the visit.3. Have Your Property InspectedDuring the assessment, the assessor will review your boiler, radiators,loft insulation, windows, and lighting. They will measure your rooms and note down the materials and systems in your property to calculate its energy efficiency. The inspection usually takes around 30 minutes to one hour, depending on your property’s size and layout.4. Receive Your EPCAfter the assessment, you will receive your EPC within a few days, often by email. The certificate will display your current rating and suggested improvements to help you raise your property’s energy efficiency if needed. An EPC remains valid for ten years, allowing you to market your property for sale or rent during this period without requiring a new assessment unless you wish to update your rating after making improvements.Why You Need an EPC Before Marketing Your PropertyIt is a legal requirement to have a valid EPC before advertising your property for sale or letting in the UK. Estate agents will ask for the EPC when listing your property, and potential buyers or tenants often request to see it during viewings. A good EPC rating can improve your property’s appeal, making it more attractive to energy-conscious buyers or tenants, whilst helping you avoid fines that could disrupt your sale or letting plans.Costs of Obtaining an EPC in the UKThe price of an EPC assessment varies across the UK, generally costing between £50 and £120. This fee is a one-off payment to the assessor for visiting your property and producing the certificate. Given the potential penalties for marketing a property without an EPC, this cost is a necessary investment to keep your sale or letting on track.What If Your EPC Rating is Low?No need to worry if your EPC rating is low, because the report will provide a clear list of the recommendations needed to improve the rating. It may include tasks like adding loft insulation or even adding energy-efficient lights. If you’re a landlord, it is compulsory to match the rating E or go above to stay legally under the Minimum Energy Efficiency Standards (MEES). Upgrading your property will ensure it’s competitive in the market as well. Frequently Asked Questions About Obtaining an EPC?1. Do I need an EPC if I am letting out a single room?If the tenant is using just a single part of the property, you will still need to get an EPC. In this case, check with a reliable estate agent like Cribs Estate to make a better decision. 2. Can I use an EPC I obtained years ago?The validity of an EPC is ten years, so you can use it for this period. Or else you can update it once the improvements are complete. 3. What happens if I market my property without an EPC?Marketing the EPC without legal authorization can result in hefty penalties of up to £5,000, as well as delay your sale and letting process. 4. Can I check if I already have an EPC?Yes, you can visit the UK EPC registry, or you can ask an estate agent like Cribs Estates to do it for your property and check the validity of the certificate. How Cribs Estate Can Help YouAt Cribs Estate, we understand that handling property compliance can feel overwhelming, especially when preparing your home for sale or letting. We work alongside trusted, accredited assessors to help you obtain your Energy Performance Certificate swiftly, ensuring you are compliant and ready to market your property without delays. Our experienced team will guide you through the process, assist in arranging your assessment, and help you understand any recommended improvements to enhance your EPC rating.