HMO Mortgage Brokers

HMO mortgages, (or House in Multiple Occupation) mortgages can be far more difficult to arrange than your everyday buy-to-let mortgage. So if you’re buying any type of property that you plan to let out to multiple households, whether that’s student accommodation, MUFB (multi-unit freehold blocks) or a maisonette, it’s a good idea to speak to a broker with specific experience in that area.

Mortgage lenders tend to be more cautious when it comes to lending for this purpose, with fewer accepting HMO applications than single family buy-to-let purchases, and stricter criteria from those that do consider them. Below we explain why using a broker with specialist skills and knowledge in this field can make the process much simpler, and how to seek them out.

How to find a mortgage broker that specialises in HMO

For HMO landlords, finding the right mortgage broker for HMO applications can be the difference between success and disaster. At Echo Finance, there are plenty of mortgage brokers on our team who specialise in buy-to-let, and some with explicit experience in arranging HMO mortgages. We can put you in touch with a broker with experience in your preferred lending niche, including HMO purchase and refinance.

Simply make an enquiry with us and specify your exact needs, and we will match you with a broker who has the relevant experience for a free, no-obligation chat with them.

Who are your HMO specialist brokers?

Several members of our adviser network specialise in arranging UK HMO mortgages.

• Jane Colby is one of our best HMO mortgage brokers. Based in Essex, but able to help clients across the entire UK, Jane is CEMAP qualified with 13 years of experience and holds an additional qualification in specialist property finance. As an active investor herself, she specialises in HMO lending, and can provide credible real-world advice in all areas of buy-to-let and and bridging finance.
• John Tarazi is one of the co-founding directors of Echo Finance. As well as running all of the brands under our umbrella, John continues to offer customers advice as an expert broker, providing specialist knowledge in the more complex areas of the buy-to-let niche, including HMO transactions. He holds CeRER and Cert CII (MP) qualifications, and has been providing mortgage advice for over 17 years.

We also have a range of brokers who offer HMO mortgage advice in other languages, such as Punjabi, Urdu, Hindi, Gujarati, Greek, Italian, Spanish, French and more. Check out our broker directory to find out more.

Why use a broker who specialises in HMO buy-to-lets?

Using an experienced mortgage broker who specialises in HMO transactions has multiple benefits. Because HMO lending is complex, and mistakes can be expensive, having the right guidance is important for both new and experienced HMO landlords.

Here are just some of the benefits that a broker with explicit experience in HMO lending offers:

• Lender awareness: There are few mainstream lenders operating in the HMO lending niche, especially if you’re looking at large HMO properties for five or more households. Most of these products are offered by specialist lenders who have a greater appetite for this type of investment. Brokers with specialist knowledge in this area know which lenders to approach for borrowers in your specific circumstances, whether you’re operating in a geographical location with restrictions, or looking to refurbish a HMO property before letting it out

• Regulatory knowledge: HMO properties usually require a license, and individual councils tend to have unique restrictions that make it more difficult to meet lender criteria. Brokers who overcome these hurdles on a daily basis can help prevent you from overlooking these requirements, and making decisions that could cause setbacks in your investment

• SPV knowledge: Many landlords are looking to hold HMO properties within a SPV (special purpose vehicle) to maximise their tax efficiency. Lenders are incredibly strict when it comes to use of the correct SIC codes for HMO SPVs, so it’s important that your broker can guide you on this, especially if you’re new to this type of property investment

• Easy rate comparison: Independent mortgage brokers, like those in our network have access to the whole market, meaning they can consider your application broadly to ensure you’re achieving the best rates for your circumstances. Additionally, many specialist HMO lenders are not available directly, so using a broker with existing relationships with this type of niche lender can prevent you from missing out on opportunities you wouldn’t otherwise have access to

Speak to a specialist HMO mortgage broker today

If you need the services of a mortgage adviser who understands the nuances of HMO mortgage lending criteria, Echo Finance has you covered. Several brokers on our team can provide mortgage advice in this niche, as well as:

• Access to specialist HMO mortgage lenders with exclusive deals

• Experience in financing all types of HMOs

• Support for both first-time HMO landlords and experienced investors

• A free initial consultation

Ready to take advantage of a free, no-obligation chat with a broker who specialises in HMO buy-to-let mortgages? Get started here.