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.
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)
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
Early repayment charges
We apply these charges when you pay above the overpayment allowance for this mortgage
Redemption fee
£150
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
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)
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
Early repayment charges
We apply these charges when you pay above the overpayment allowance for this mortgage
Redemption fee
£150
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
Check your HMO eligibility with Molo
Find out if you meet our full lending requirements before applying
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