HMO mortgages

Get an HMO mortgage for up to 6 bedrooms with Molo

What is a HMO?

HMO stands for ‘house of multiple occupation’ and refers to a property rented out to three or more unrelated individuals who share facilities such as the bathrooms and kitchen.

A ‘large HMO’ is when five or more people, not from the same family, live in the property and share facilities together.

HMO licences

Standard HMOs typically don’t need a licence by law. However, some local councils may require you to have a licence, and you should always check with your local authority before letting an HMO. If you have a large HMO with five or more tenants, you will be required by law to obtain a license before you can let the property.

Our products for HMOs

The mortgage calculations below are based on a loan amount of £150,000. For a personalised illustration, please visit our mortgages calculator.

5 Year Fixed

3.74%

Monthly payment

£468

Variable Fee

1.5%

£2,250

True cost

£30,300

5 Year Fixed

3.74%

Monthly payment

£468

Flat Fee

£2,950

True cost

£31,000

HMO eligibility with Molo

Houses in Multiple Occupation (HMO)

Lending available on properties of up to 6 bedrooms

60% to 75% Loan to Value (LTV)

We currently lend up to 75% LTV for HMO properties

Physical valuation

A physical valuation is required to decide the suitability of the property

Experienced landlords

Landlords must have 12 months’ experience renting out a property

Licences

HMO licence may be required and is mandatory for HMOs with 5 or more occupants

Application process

  • Check eligibility Answer a few questions about yourself and how much you’d like to borrow
  • Mortgage approval icon
    Decision in Principle We’ll let you know whether we can lend to you and how much you could borrow
  • Property check Tell us a bit about the property
  • Your mortgage Select the mortgage that is right for you
  • ID verification Take a quick selfie which will be checked against your ID
  • Mortgage Offer If you and the property meet our lending criteria we’ll email your mortgage offer
  • Check eligibility Answer a few questions about yourself and how much you’d like to borrow
  • Mortgage approval icon
    Decision in Principle We’ll let you know whether we can lend to you and how much you could borrow
  • Property check Tell us a bit about the property
  • Your mortgage Select the mortgage that is right for you
  • ID verification Take a quick selfie which will be checked against your ID
  • Mortgage Offer If you and the property meet our lending criteria we’ll email your mortgage offer

Helpful tools

Mortgage calculator

Find out how much you could borrow based on property price and rental income.

Mortgage rates

Discover our best rates and the true cost of your mortgage product.

Decision in Principle

Start your mortgage journey by getting a DIP to see how much you can borrow.

Get your online Decision in Principle

90% of our Decisions in Principle are given in less than 2 minutes. It’s free and will not affect your credit score.