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 rates page.

5 Year Fixed

3.55%

Monthly payment
£444
Variable fee
1.50%
£2,250

True cost

£28,875

5 Year Fixed

3.55%

Monthly payment
£444
Flat fee
£2,950

True cost

£29,575

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

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