HMO Mortgage Process & Criteria

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Before applying for an HMO mortgage it is important you choose the right lender for your needs. We search the whole market to find you the lowest rates whilst making sure the process is made as easy as possible.

This guide will give you an understanding of the differences in HMO lender criteria. For more information, you can find out the answers to the most frequently asked questions on HMOs here or use our calculator tool to see what rates are available.

Read on below to find out more or fill in the form to talk to an expert.

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How Do I Apply For An HMO Mortgage?

Follow the steps below to get a feel for the application process or contact us to find out more.

1 Discuss your enquiry with either suitable HMO mortgage lenders or a broker who can point you in the right direction and issue you with likely terms showing rate and fees etc.
2 When a suitable property is found or if this is a refinance, the process can begin. The lender or broker will run through the application form and send a list of the required documentation needed to begin the application process.
3 If the initial decision in principle is agreed by the lender (credit searches carried out etc.), the full application can be submitted and all documents will be checked through by an underwriter.
4 If everything is acceptable, the valuation will be instructed and legal work started. The valuation report will provide information to the lender regarding property and rental values, demand for an HMO property in that area and condition of the property.
5 If the valuation report is satisfactory, the mortgage offer will be issued. A copy of this will be sent to you and your solicitor. If using a broker, they will usually run through this document with you to ensure it is understood and answer any questions you may have.
6 Your solicitor will handle the legal work such as carrying out searches etc. When everything is satisfied and the offer document is signed and returned, the funds can be drawn down.
7 Completion of the mortgage can now take place.

HMO Mortgage Criteria

Here is a range of criteria based on the requirements of numerous HMO mortgage providers:

  • Minimum loans from £25,000 with no maximum.
  • SPV (Special Purpose Vehicle) or Ltd company applications accepted.
  • No maximum number of bedrooms.
  • Terms of 5 – 35 years available.
  • Interest only, capital repayment or part & part.
  • Minimum age 18.
  • Maximum age at redemption 110.
  • Maximum age at application 80.
  • Adverse credit accepted.
  • No minimum income.
  • Portfolio applications accepted.
  • First-time landlords

To browse the best HMO Mortgage rates to suit your particular needs please look at our comparison page. If you want to speak with an advisor call 01922 620008 and we will answer any questions you may have.


About The Author

Lee has built a wealth of knowledge and expertise within the commercial finance sector and has sat on the family management team since 2007. His knowledge of the complex residential investment market led to our growth in the HMO and commercial property investment markets. Lee combines his work on HMO and complex investment properties alongside his work in the bridging loan, commercial mortgage and development finance markets.

Lee Hemming CeMAP  -  
Sales Director

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