HMO Mortgages

Teal Finance specialise in leveraging mortgage deals for houses of multiple occupancy to achieve the maximum yield of rental properties.

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Development Costs & Fees
100%
Up to 75% of the LTGDV
75%
Competitive interest rates
4.5% pa

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Leveraging HMO mortgages for greater yields

Following tax changes regarding Buy-To-Let mortgages, a growing number of landlords are looking to convert their single-let property into an HMO (House in Multiple Occupation). But why?

There is a potential yield increase (12-15%) from renting more rooms, particularly in towns and cities and statistics show that this figure is set to continue to grow.

Managing an HMO property is more labour intensive and it is important to keep up to date with information on Regulations and Health and Safety as many HMOs are subject to licensing (where a property is rented to five or more people constituting more than one household, or is at least three storeys high). A property is also deemed to be an HMO if at least one tenant pays rent and if the property’s tenants share toilet, bathroom or kitchen facilities.

Some Local Councils also require planning permission to convert a property to HMO usage, so it is important to check and keep up to date with both Central and Local Government changes.

Running an HMO will increase costs of conversion and maintenance costs will be higher, but this should be covered by the higher yields after the first few years. A good agent can help manage the property on an ongoing basis, this may help avoid rent voids as turnover of renters can be higher than in single let properties, as the property is let on a room by room basis.

Whether you are a new Landlord or an experienced Developer with a growing portfolio of HMO properties, we can help you secure the most attractive deal with up to 85% LTV (Loan-To-Value) for outright purchases or re-finance arrangements.

Get a quote now: Contact one of our dedicated commercial finance advisors if you are interested in discussing your bespoke HMO mortgage requirements for converted or purpose-built properties.

Use the contact form below and we’ll get back to you as soon as possible.

HMO Mortgage Calculator

Please use our HMO loan calculator to work out what you could potentially borrow!

This will be dependent on the security offered by the property and the rental income. Interest rates on the loan will be very much dependent on your individual circumstances and lender criteria - please contact a broker to discuss further.

£
£
Indicative quotation
Total Security Value [1] £250,000.00
Monthly rental [2] £1,000.00
Loan Period [3] 24 months
Applicant type Individual
Maximum Net Loan Amount [4] £150,470.22

Send this indicative quote directly to Teal Finance and we'll continue from there, email it to yourself or whom it may concern.

Notes:
  1. Total value of the property the loan is secured against
  2. The monthly rental income from the property
  3. The duration of the loan
  4. The maximum net loan that could be borrowed based on these figures (indicative)

Please note, this is an indicative calculator. The figures displayed are subject to the lender's approval and due diligence.

Why choose us?

Access to more lenders

Whole of market brokers with access to specialist lenders and the experience to get you a highly competitive rate.

Property professionals

We specialise in bridging loan and development finance cases so you can rely on an innovatively structured deal.

Fast, expert service

We liaise with all involved on your behalf to ensure deadlines are met and drawdown is made in a timely manner.

01603 574404

We work closely with specialist lenders, private funders, high street lenders and challenger banks and we know how to put together the best bespoke deal.

Lucy O'Mara

CeMAP - Finance Broker