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 houses

• Professional house shares

• Properties converted into multiple bedsits

Because 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 Criteria

To 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‑Let

Many 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, or

• 3 or more storeys

Some 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 Mortgage

• Owning 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 Mortgage

At 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.