HMO mortgages

Are you a landlord looking to buy a House in Multiple Occupation (HMO) property in Essex? HMO properties can yield greater rental income than standard buy-to-let, but securing the right mortgage can be more challenging. Goldmanread can provide professional and impartial advice on securing a competitive HMO mortgage.

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Welcome to Goldmanread, HMO mortgage brokers

Here at Goldmanread, we understand the growing appeal of Houses in Multiple Occupation (HMOs) within the buy-to-let market. Essex is a prime location for multiple occupation properties, and with the right advice and mortgage, it can be a lucrative investment.

As a specialist HMO mortgage advisor, we offer mortgage services for landlords. With over a decade of industry experience, we have access to a wide range of high-street and specialist HMO lenders, meaning we can find the best deal to help make the most of your investment.

Getting a mortgage for an HMO property can present more challenges than a regular buy-to-let. Lenders typically have stricter criteria, and there are more constraints and conditions. Goldmanread can help you understand your options and approach the right lenders based on your financial situation, portfolio and goals.

Contact us today for a friendly chat about your own HMO mortgage rates and requirements.

What is an HMO?

Houses in Multiple Occupation (HMO) are single dwellings shared by multiple tenants (typically three or more) from different households (i.e. families). This typically involves renting out individual rooms, with tenants sharing communal facilities like kitchens and bathrooms.

This type of accommodation is popular among students, young professionals, and other individuals seeking affordable living arrangements in urban areas.

There are many opportunities as an HMO landlord in Essex. The areas surrounding the University of Essex’s campuses in Colchester, Loughton, and Southend have large student populations and there are thousands of young professionals and city commuters looking to minimise living costs as they save for a mortgage.

The property market is full of large, period properties in urban areas that are prime for multiple occupancy. While the running costs are typically higher than standard buy-to-let, the rental yields from multiple occupation can be significantly higher, making it a potentially very lucrative investment.

Can you get a buy-to-let mortgage on an HMO?

Standard buy-to-let mortgages aren’t suitable for houses in multiple occupation. HMO landlords need a specialist loan from an HMO mortgage lender, which takes into account the higher potential rental income and specific regulations surrounding HMO properties.

What do HMO mortgage lenders look for?

HMO lending typically comes with more criteria. HMO lenders consider factors such as rental income, property location, tenant type, and the landlord’s financial stability.

While criteria can vary between lenders, common, HMO lending criteria include:

  • Minimum property value: Lenders typically have a minimum property value, e.g. £75,000 to £100,000.

  • Experience and existing portfolio: Some HMO lenders require experience as a landlord, particularly for a large HMO loan.

  • Loan-to-Value (LTV): Lenders tend to offer lower loan-to-value (LTV) ratios for HMOs than for standard buy-to-let mortgages, typically no higher than 75%.

  • Interest Cover Ratio (ICR): This assesses the borrower’s ability to afford the mortgage repayments. Lenders often require a higher ICR for HMOs to account for potential voids, i.e. times when the property is vacant.

  • Rental Cover Ratio: The rental cover ratio measures the relationship between a property’s rental income and mortgage payments to ensure the income covers the expenses. This ratio tends to be higher for multi-occupation properties.

  • HMO Licence: For a large HMO (typically more than five tenants), you may need an HMO licence from your local council. This measure was introduced to ensure that houses in multiple occupations are safe, of high quality and well managed.

Can anyone get an HMO mortgage?

HMO loans can be a good option for many landlords, but eligibility criteria vary among lenders. Factors such as credit history, income stability, and experience in property investment may influence your ability to secure financing.

Working with a specialist HMO mortgage adviser like Goldmanread can help you navigate these requirements and find the best solution for your needs.

Our HMO mortgage services

Whether you are a seasoned landlord or just getting into the world of HMO and buy-to-let mortgages, Goldmanread can offer valuable market advice and steer you towards the most competitive deal from the right lender.

Free initial consultation

We will schedule a free, no-obligation consultation to discuss your investment goals, help us understand your personal situation and answer your questions about HMO lending.

Whole of HMO mortgage market search

We will compare HMO loans from across the market to find the best rates and terms for your circumstances and goals. Our thorough search includes both high-street and specialist HMO mortgage lenders.

Fuss-free negotiation and application

We’ll negotiate your mortgage deal with the lender, and following approval, we will manage the application process, ensuring all the necessary documentation is gathered and submitted efficiently.

Support and guidance

We’ll stay in touch throughout the process, keeping you updated and handling any queries you may have.

Why choose Goldmanread as your mortgage broker?

Goldmanread has extensive experience securing HMO mortgages for Essex landlords. We are dedicated to securing the best HMO mortgage rates for our clients and providing a stress-free and transparent service.

Contact us today for a free initial consultation with a specialist HMO mortgage adviser

Frequently asked questions about HMO mortgages

The loan amount depends on the lender, who will have their own criteria and loan amount limits. The key points that affect the LTV are the purchase price, projected rental income, and your personal financial situation. Generally, lenders offer lower LTV ratios for HMOs compared to standard buy-to-let mortgages, with many requiring at least 75%.

It's important to understand how different lenders value houses in multiple occupation, as this dictates the LTV and, therefore, how much you can borrow. There are two ways to value an HMO property: a simple bricks-and-mortar valuation or a commercial, yield-based valuation. The latter is most common for a large HMO.


HMO valuations must be carried out by a specialist, and most lenders insist that the borrower cover the valuation fees.

Landlords of multiple-occupancy dwellings can either issue a tenancy agreement for each tenant or a single 'joint and severally liable' agreement.


HMO lenders may dictate the type of tenancy agreement required for properties they finance. Typically, lenders prefer assured shorthold tenancy agreements (ASTs) for HMO properties. Some lenders may have specific requirements for tenancy agreements, such as clauses on provisions for shared facilities, tenant responsibilities for communal areas, and compliance with HMO regulations.


It's essential for HMO landlords to review their lender's requirements and ensure that tenancy agreements for HMO properties are compliant. Working with experienced HMO mortgage brokers like Goldmanread can help borrowers navigate lender requirements and ensure compliance with all necessary documentation for securing HMO landlord financing.

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