What is it?

A House of Multiple Occupancy (HMO) is a specialist asset class where a single property is subdivided and individually rented out to different people who share some common areas such as bathrooms and kitchens. HMOs are different from purpose-built flat blocks, as they usually will have been converted from larger single buildings. We work with a range of specialist lenders who provide mortgages specifically for HMOs.

HMO definition

Click here for a diagram to help you decide if you fall into the definition of a HMO

Click here to see our HMO factsheet


When done well, HMO BTL properties can offer stronger yields than simpler BTL properties for the experienced investor.

Who is it for?

Mortgages for HMOs are intended for experienced landlords who already have a few simple properties, or an HMO, operating either as an individual or a business.

Investors looking to take out a HMO mortgage under the name of a limited company should refer to our Limited Companies / Special Purpose Vehicles section.

Top Tips


Putting a lock on every room is not the same as an HMO. If you do not ensure that your property is HMO-specific, valuers and lenders may only see it as having the value of the family home it once was.


It is particularly important with HMOs to make sure it is a high quality property in order to get the desired long term return on investment.


Be aware of local council legislation, for example where there is an Article 4 Direction in the area. This will impact on the planning permissions needed for conversion into an HMO.

Get in touch today to discuss your HMO plans in more detail.