Skip to content Sitemap

HMO fixed for 5 years

A five year fixed rate mortgage to purchase or remortgage an investment property to rent out up to a maximum of six bedrooms.

Get an idea of how much you can borrow with our affordability calculator. The calculator will work out the maximum amount you could borrow by using a 5 year fixed rate to calculate the highest mortgage possible. Where a 5-year fixed rate is not available, the lowest rate will be used, stressed at +2%. Please contact the team to discuss your specific circumstances.

With years of experience under our belt we can cater for aspiring first time landlords to portfolio investors. Our personal approach to mortgages allows us to assess each case individually on its own merits. This product requires a minimum 25% deposit and our loans range from £350,000 – £1.5 million.

Our flexible approach allows us to cater on a consumer BTL basis, which can include any of the following scenarios:

  • When a family member has occupied or will occupy the property
  • The property was inherited, and the applicant owns no other investment properties
  • A Let to Buy where the applicant owns no other investment properties.

The mortgage listed below moves on to our Standard Variable Rate, currently 4.9% (variable), after the initial rate period.

rate i
Overall cost for
comparison i
Max %
type i
3.89%4.8% APRC75%Interest only and repayment options available
See example

Representative example: A mortgage of £460,000.00 taken out for a period of 25 years on an interest only basis.
Monthly instalments: £1,491.17 per month for 59 months, followed by £1,885.10 per month for 240 months.
Total amount payable: £1,005,013.03.
Total amount of credit: £460,000.00.
The total amount payable includes administration fee £125, valuation fee £860, product fee £3450, completion fee £75 and closing fee £100.
The overall cost for comparison is 4.8% representative APRC.
This example relates to the HMO 3.89% fixed for five years product, is based on a typical mortgage and assumes that fees are not added to the mortgage. Please ask for a personalised illustration for your own particular requirements.

  • Key features
    • Availability – HMO Purchase & Remortgage up to 75% Loan To Value (LTV). Minimum deposit of 25% required.
    • Flexibility – Overpayments up to 20% of the capital balance as at 1st January allowed in each calendar year without penalty.
    • Portable.
  • Early repayment

    If you repay your mortgage early, or make an overpayment, you may have to pay an early repayment charge.

    For full repayment, you will pay 3% of the outstanding balance in years 1, 2, 3 & 4; 2% in year 5, plus a Closing Administration Fee (currently £100).

    For overpayments, you will pay 3% on any amount exceeding your 20% limit in year 1, 2, 3 & 4, 2% in year 5.

  • Product fees
    • Administration Fee £125.
    • Valuation Fee (HMO scale).
    • Product Fee 0.75% of advance (Minimum £999).
    • Completion Fee £75.
  • Lending criteria

    Lending Criteria and Information

    Loan:Size: Minimum £350,000, maximum £1,500,000 up to 75%.
    Term: Minimum 5 years, Maximum 40 years.
    Repayment Type: Capital Repayment, Interest Only.
    Property:Must be standard construction.
    New build flats may be considered. Must be in England, Wales or mainland Scotland.
    Applicant:Age: Minimum 21, no maximum, subject to income in retirement.
    Income:Household income must be at least £20,000.
    Rental:The calculation is based on the actual or expected rental. Rent must cover 150% of the ‘stressed mortgage payments’ for both basic and higher rate tax payers. The stressed mortgage payment is based on the product rate +2% or 5.5% whichever is higher.
    Underwriting:We take a flexible approach to underwriting and will consider each case on its merits. We do not credit score. The actual rate and APRC for your case will depend on your circumstances and our assessment of the risk.
  • Proc fee

    We will pay a gross procuration fee of 0.35% on all introduced business. The fee is usually paid within five working days following completion. Procuration Fees may vary for our recognised Clubs & Packagers.

  • Useful stuff

    Tariff of Mortgage Fees

    Mortgage Conditions

How to apply

Broker Online

Find out more and apply on Broker Online


Contact us

Call us

01225 475729

Call us

Live chat

Talk to us

Live chat

This section is for use by professional Intermediaries only. If you are a customer please visit our Mortgage section.