HMO mortgages and finance for Houses in Multiple Occupation

Helping you maximise returns and minimise your finance costs

Speak to one of our experts020 4525 5312

Funding options


Cost effective HMO Finance

  • Up to 100% Loan to Value available
  • Rates from 2.3%
  • £50,000 – No Maximum
  • Repayment and interest only available

The Most Versatile Finance

  • HMO portfolios our speciality
  • Market value OR bricks and mortar value
  • No Income Proof Required
  • Specialist help for first time HMO landlords

All types of HMO's Finance

  • Refinance existing property assets
  • HMO''s without licences
  • Converting properties to HMO's
  • Extract cash from your current portfolio

Talk to Rangewell – the HMO Finance and Mortgage experts

HMOs can provide excellent returns, but finding the most appropriate HMO finance is key. Rangewell work with over 37 mortgage lenders who fund HMO's, and we work with you to find the most competitive deal.

At Rangewell we recognise your professional status, and we work harder to find you better solutions - which can include 100% finance for many of your needs.

HMO property can be a rewarding investment...

...make sure you have the best HMO mortgage and finance to maximise your returns

Rangewell are a specialist HMO mortgage broker who actively work with the whole of market range of specialist HMO mortgage lenders.

It is important to realise that the right HMO Financing can make a huge difference to the profitability of your business and as your partner Rangewell's aim is to save you both time and money.

So whether you're a first time HMO landlord, an experienced HMO landlord looking to expand your portfolio or looking for an HMO remortgage  Rangewell can help you think through and understand the range of appropriate and affordable financing available.

As your partner we will work with you to:

  • Help you understand the difference between a BTL Mortgage and an HMO Mortgage
  • Review if you need an HMO Mortgage (in some circumstances a standard BTL mortgage may be available and more appropriate)
  • Check your eligibility for an HMO Mortgage (Our proprietary HMO Mortgage Calculator will identify the range of lenders willing to finance your property - allowing you to chose the correct LTV and interest rate combination that's right for your requirements)
  • Identify the best lenders and the best finance rates for your specific circumstances
  • Calculate and help you minimise the deposit you need for your HMO Mortgage

We can also help with complex cases:

  • HMO Mortgages and finance for first time landlords
  • Large HMO's - we have lenders with no upper limit on the number of bedrooms per property
  • Finance for HMO's held in Limited Companies / SPV's and other complex structures 
  • Student Lets designated as HMO's
  • ExPats and Foreign Nationals looking for HMO finance
  • Properties operating as HMO's without planning permission (and we can refer you to specialist support to help rectify historic licencing issues)
  • Capital Raising from your current HMO Portfolio.

In almost all cases, because Rangewell are specialist HMO Mortgage Brokers, our experts will be able to identify a number of lenders suitable for your requirements and be able to offer a range of fixed and floating interest rates.

Getting the right type of HMO mortgage and property can make a big difference to the levels of returns you enjoy. Many experienced investors have discovered that they can increase the raising the overall income earned from a property by renting rooms on an individual basis.

According to data from Mortgages for Business, you could expect the overall yield on a standard buy to let with a single household tenant to average 5.8% in the first three months of last year.

HMOs - Houses in Multiple Occupation -  yielded an average of 10.2%.

It looks as though you might enjoy a better return on your investment by letting an HMO. But you will need a special kind of finance. Fortunately, at Rangewell, we can help you find the type of funding you need.

What is an HMO?

HMOs can provide these increased yields because they provide rent by letting individual rooms, providing multiple income streams, and higher yields overall compared with letting to a family.

Government regulation states that an HMO has at least three unrelated tenants living in a home sharing a toilet, bathroom or kitchen facilities. It becomes a ‘large HMO’ if it has more than five tenants and is over more than two floors.

Large HMOs automatically need a licence from the council and need to meet certain standards for fire safety. In some areas, all HMOs require a licence. You should check with your local authority.

Each bedroom will be let as a separate room and each will need a separate lock and a fire door.

Unlike a standard let, with a shared occupancy and one tenancy agreement covering all the occupants, an HMO usually requires individual short-term tenancy agreements with each of the tenants.

It will also require a special kind of funding.

Funding an HMO

Not all lenders are keen on providing mortgages for HMOs because of what they see as an increased risk.

HMO properties are traditionally seen as unlikely to attract family renters, and as often being of poor quality, offering little security for the lender. To make matters worse, the modifications required to turn a property into an HMO, including fire doors and escape routes, individual heating and meters in each room will further detract from the resale potential.

An existing Buy to let Mortgage may have clauses preventing you from turning it into an HMO.

As a result, many investors believe that a Commercial Mortgage is needed for HMO property. At Rangewell, we know the specialist lenders who can offer competitive deals for landlords looking to purchase an HMO or convert an existing property, with an HMO Mortgage. They may be more costly than a conventional Buy to let Mortgage, but can cover up to 75% loan-to-value.

The changing image of HMOs

HMOs have often been regarded as likely to attract benefits claimants and students, rather than prime tenants. This reputation is beginning to change, as the high price of renting in city centres is encouraging many young professionals to rent a room in a shared house rather than a flat.

Many investors are now seeking to cater for this lucrative market by providing high-quality accommodation in fashionable areas.

Specialist funding for HMOs

With our help, finding a lender for both licensed and non-licensed HMOs can be straightforward, although each lender has their own approach and criteria, and costs may be a little higher than comparable buy to let arrangements,

Some will base their valuation on the price achieved if it were purchased as a single dwelling, restrict the amount that you can borrow. However, others will base their valuation on the achievable rental income or ‘investment value’ when making their lending decision.

Some may only consider you for an HMO Mortgage if you are an experienced landlord. Most will make it a condition of the mortgage offer that you are deemed ‘fit and proper’ to run an HMO.

Other considerations may include:

  • The number of letting rooms and expected or actual rental income
  • Location
  • Your experience as a landlord
  • Whether you’ll be managing the property yourself or using managing agents
  • Types of tenants
  • Loan amount
  • Your credit rating

Financial solutions from Rangewell

The property market is highly competitive, and it is important to have expert help to get the kind of funding that will help you reduce your outgoings.

At Rangewell, we can use our property finance expertise to support your business – and ensure that you have the financial solutions you need. We can help source business lenders who can provide specialised HMO funding - and search their offering to find you the lowest HMO Mortgage rates. By doing this, you get to keep as much of the rent received as possible, helping you make more profit.

Discover our range of finances

Every type of finance for every type of business

Our goal is very simple - to help businesses find the right type of finance as quickly, transparently and painlessly as possible.

Helping you build your profits

  • Improve your returns
    Experienced investors are seeing the opportunity to raise the overall rent earned from a property by renting rooms on an individual basis.
  • Funding based on existing property
    We can help you remortgage an HMO you already owning, providing cash for buying additional property.
  • A solution tailored for HMO landlords
    We can approach lenders who may lend based on the investment value of your property - the amount it will realise in rent, rather than its value as a property.
  • Funding for multiple properties
    HMO lending can be arranged for multiple properties, allowing you to grow an HMO business.
  • High loan to value
    HMO mortgages can provide up to 75% LTV, making it easier for you to buy the property you want.
  • Maximise your profits
    We can help you find the most competitive funding, ensuring that you can maximise your returns.

Download Rangewell’s free and detailed guide to Property Finance

What types of Property Finance are there - which is right for you?

Why not all providers are equal

How we can help you pay less

The downsides to Property Finance - and how to avoid them

How to arrange Property Finance - What paperwork do you need?

Key terms explained

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You must have a specilist lenderNot all mortgage lenders will serve the HMO sectors. You need a specialist in to provide the most appropriate type of funding.
Costs and management burdens can be much greater with an HMOModifications to the property will be required and a licence from the local authority may be necessary. You will need to budget accordingly.
Standard Buy-to-Let mortgages cannot be usedMost standard Buy to Let mortgages include clauses that prevent them from being used with HMO property.

Our service is:


Transparent and independent, treating all lenders equally, finding the best deals.


Every type of finance for every type of business from the entire market - over 300 lenders.


Specialist Finance Experts support you every step of the way.


We make no charge of any kind when we help you find the loan you need.