Mortgage for House in Multiple Occupation

If you’re exploring HMO (Houses in Multiple Occupation) mortgages, having a clear understanding of the market and regulations is essential. Whether you need competitive rates, want to remortgage an HMO property, or simply want to learn more about your options, we’re here to assist.

Our Buy-to-Let Services:

Purchase
Remortgage
Limited Company
Portfolio Landlord
House in Multiple Occupation (HMO)

Selecting a brokerage service like St. George Commercial Finance Brokers Ltd. can greatly enhance your chances of securing the best HMO mortgage rates. With our strong network of buy-to-let lenders and in-depth expertise, we efficiently handle and present your case for optimal results.

What is an HMO mortgage?

Buying through a limited company can offer tax benefits, including lower corporation tax rates and the ability to offset mortgage interest against rental income, making it a tax-efficient investment structure.

Do I need a license for an HMO mortgage?

Yes, limited company buy-to-let mortgages may have slightly higher interest rates than personal mortgages. However, lenders offer competitive deals tailored to corporate borrowers, and tax savings can often outweigh the higher costs.

How do HMO mortgage rates compare to standard buy-to-let mortgages?

Lenders assess factors such as rental income coverage (usually 125–145% of mortgage payments), company structure (SPV or trading company), director guarantees, and the applicant’s financial standing before approving the loan.

How many tenants can live in an HMO property?

Yes, but this is considered a sale, meaning you may need to pay Capital Gains Tax and Stamp Duty. Seeking professional tax and mortgage advice is crucial before making the switch.

Can I convert my existing buy-to-let mortgage into an HMO mortgage?

Yes, but this is considered a sale, meaning you may need to pay Capital Gains Tax and Stamp Duty. Seeking professional tax and mortgage advice is crucial before making the switch.

Frequently Asked Questions

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Whether you need assistance with financing or have a question about our services, our team is here to support you.