HMO mortgages

Get an HMO mortgage for up to 6 bedrooms with Molo

We're here to simplify your mortgage experience

Ditch the long waits and the endless paperwork with an online mortgage loan.

Minimum experience

HMO products are available to all landlords with 12 months' landlord experience.

Faster processing

Being online and automated means we can deliver faster decisions throughout the process and give out your offer in less time than high-street banks.

Fully online

Being fully digital means we’ll review your application entirely online, no paperwork or appointments needed, saving your time & energy.

Fair and trustworthy

We won’t waste your time with jargon or hidden fees. You can find all the information you need on our website, including the true cost of your loan and any fee you are expected to pay.

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.

2 Year Tracker

5.29%

Monthly payment
£860.00
Product fee
2.00%
£3,900

True cost
£24,531

LOAN DETAILS

  • Initial rate term
    24 months
  • Loan amount
    £195,000
  • Mortgage term
    25 years
  • Follow-on rate
    4.99%

This is a variable rate made of: a fixed rate of 1.99% above the Bank of England base rate (currently 3%)

Payments

  • True cost
    £24,531.12
  • Initial monthly payment
    24 x £859.63
  • Followed by
    276 x £810.88
  • Total amount to be repaid
    £444,984.00
  • Total interest payable
    £244,434.00
  • APRC
    5.40%

Product cost and fees

  • Product fee
    2.0% of loan
    (£3,900)
This fee is payable before we complete your loan. In some instances you may be able to add the fee to your loan
  • Conveyancing fee
    £1,440

This is an indicative typical fee for dual representation based on the details you’ve given us and assuming a freehold property. It may change if you provide different information later.

You may choose to use your own solicitor instead, but you will need to pay an additional fee for our legal work. There are additional fees you may need to pay.

If you’re applying as a company, we require you to take Independent Legal Advice (ILA).

  • Valuation fee
    £210
You might need to pay for a physical valuation of the property (this fee is only indicative)

Early repayment charges

We apply these charges when you pay above the overpayment allowance for this mortgage

  • Redemption fee
    £150
We only charge this if you pay off your mortgage early or change lender
  • Overpayment
    100%

You may make overpayments up to the amount shown in each 12 month period. Early Repayment Charges will apply for overpayments that go over this limit.

Additional features

  • Cashback
    £500
This is valid until DD Month YYYY. Cashback will be paid within 30 days of mortgage completion.

5 Year Tracker

5.29%

Monthly payment
£860.00
Product fee
2.00%
£3,900

True cost
£55,478

LOAN DETAILS

  • Initial rate term
    60 months
  • Loan amount
    £195,000
  • Mortgage term
    25 years
  • Follow-on rate
    4.99%

This is a variable rate made of: a fixed rate of 1.99% above the Bank of England base rate (currently 3%)

Payments

  • True cost
    £55,477.80
  • Initial monthly payment
    60 x £859.63
  • Followed by
    240 x £810.88
  • Total amount to be repaid
    £446,739.00
  • Total interest payable
    £246,189.00
  • APRC
    5.40%

Product cost and fees

  • Product fee
    2.0% of loan
    (£3,900)
This fee is payable before we complete your loan. In some instances you may be able to add the fee to your loan
  • Conveyancing fee
    £1,440

This is an indicative typical fee for dual representation based on the details you’ve given us and assuming a freehold property. It may change if you provide different information later.

You may choose to use your own solicitor instead, but you will need to pay an additional fee for our legal work. There are additional fees you may need to pay.

If you’re applying as a company, we require you to take Independent Legal Advice (ILA).

  • Valuation fee
    £210
You might need to pay for a physical valuation of the property (this fee is only indicative)

Early repayment charges

We apply these charges when you pay above the overpayment allowance for this mortgage

  • Redemption fee
    £150
We only charge this if you pay off your mortgage early or change lender
  • Overpayment
    100%

You may make overpayments up to the amount shown in each 12 month period. Early Repayment Charges will apply for overpayments that go over this limit.

Additional features

  • Cashback
    £500
This is valid until DD Month YYYY. Cashback will be paid within 30 days of mortgage completion.

Check your HMO eligibility with Molo

Find out if you meet our full lending requirements before applying

mortgages molo have to offer

Requirements

Houses in Multiple Occupation (HMO)

Lending available on properties of up to 6 bedrooms

Up to 75% Loan to Value (LTV)

We currently lend up to 75% LTV for HMO properties

ICR

Minimum ICR of 125% for basic rate taxpayers and SPVs, and 145%for all other borrowers

Experienced landlords

Landlords must have 12 months’ experience renting out a property

Multiple tenancies

We consider multiple tenancies on all HMO applications

HMO eligibility with Molo

Houses in Multiple Occupation (HMO)

Lending available on properties of up to 6 bedrooms

Up 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