HMO mortgages

Houses in Multiple Occupation (HMO) have become an increasingly popular way to grow a landlord’s portfolio. Our flexible approach to underwriting means we can consider some of the most complex circumstances presented to us.

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.

Affordability calculator

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Gross annual income

Applicant 1 gross annual income i

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Applicant 2 gross annual income i

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Monthly committed expenditure i

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Anticipated monthly rent from property i

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You could borrow up to: i

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Mortgage details

Property value i

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Mortgage amount required i

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Your loan to value is i

We’re sorry but the maximum LTV for this product is X%

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Your estimated monthly payments: i

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Please scroll down for monthly payments by product.

This is the maximum amount based on the information you provided. Your mortgage adviser will take you through the application process and will calculate the amount you can afford to borrow based on your income after the deduction of those expenses and commitments. Further restrictions may apply for specialist products.

Variable mortgages

The mortgages listed below move on to our Standard Variable Rate, currently 4.9% (variable), after the initial rate period. There may be a limit on how low your interest rate can fall. This is called an ‘interest rate floor’. The interest rate floor applicable to your loan will be specified in your loan documentation.

Product name	Initial rate i	Discount from SVR i	Overall cost for comparison i	Max % LTV i	Product fee i	Mortgage repayment
HMO variable for 2 years See example	3.29%	1.61%	4.9% APRC	75%	0.75% (£999 min)	£XXX.xx per month See details
Representative example: A mortgage of £135,000 taken out for a period of 19 years on an interest only basis. Monthly instalments: £370.13 per month for 23 months, followed by £552.84 per month for 204 months. Total amount payable: £258,184.85 Total amount of credit: £135,000 The total amount payable includes administration fee £125, valuation fee £580, product fee £1,012.50, completion fee £75 and closing fee £100. The overall cost for comparison is 4.9% representative APRC. This example relates to the HMO 3.29% variable for two 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.
Ltd Company HMO variable for 2 years See example	3.29%	1.61%	5.0% APRC	70%	1.50% (£999 min)	£XXX.xx per month See details
Representative example: A mortgage of £135,000 taken out for a period of 19 years on an interest only basis. Monthly instalments: £370.13 per month for 23 months, followed by £552.84 per month for 204 months. Total amount payable: £259,197.35 Total amount of credit: £135,000 The total amount payable includes administration fee £125, valuation fee £580, product fee £2,025, completion fee £75 and closing fee £100. The overall cost for comparison is 5.0% representative APRC. This example relates to the HMO 3.29% variable for two 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.

Fixed rate mortgages

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

Product name	Initial rate i	Overall cost for comparison i	Max % LTV i	Product fee i	Mortgage repayment
HMO fixed for 2 years See example	3.69%	4.90% APRC	75%	0.75% (£999 min)	£XXX.xx per month See details
Representative example: A mortgage of £460,000.00 taken out for a period of 25 years on an interest only basis. Monthly instalments: £1,414.50 per month for 24 months, followed by £1,878.07 per month for 276 months. Total amount payable: £1,016,905.32. 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 4.9% representative APRC. This example relates to the HMO 3.69% fixed for two 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.
HMO fixed for 5 years See example	3.89%	4.8% APRC	75%	0.75% (£999 min)	£XXX.xx per month See details
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.
Ltd Company HMO fixed for 5 years See example	3.89%	4.80% APRC	70%	1.50% (£999 min)	£XXX.xx per month See details
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: £1,008,463.03. Total amount of credit: £460,000.00. The total amount payable includes administration fee £125, valuation fee £860, product fee £6900, completion fee £75 and closing fee £100. The overall cost for comparison is 4.8% representative APRC. This example relates to the HMO Ltd Co 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.
Ltd Company HMO fixed for 2 years See example	3.69%	5.0% APRC	70%	1.50 (£999 min)	£XXX.xx per month See details
Representative example: A mortgage of £460,000.00 taken out for a period of 25 years on an interest only basis. Monthly instalments: £1,414.50 per month for 23 months, followed by £1,884.26 per month for 276 months. Total amount payable: £1,020,649.26. Total amount of credit: £460,000.00. The total amount payable includes administration fee £125, valuation fee £860, product fee £6900, completion fee £75 and closing fee £100. The overall cost for comparison is 5.0% representative APRC. This example relates to the HMO Ltd Co 3.69% fixed for two 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.

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