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What is HMO Finance?

What is HMO Finance?

HMO finance is funding that is designed for a house of multiple occupation. A House of Multiple Occupancy (HMO) is a single property that is subdivided and individually rented out to different people. These tenants share communal areas such as bathrooms and kitchen facilities. HMOs are usually converted from larger single buildings, making them different from purpose-built flats. Working with a range of specialist lenders we can help source the most suitable finance for your HMOs.

Our flow diagram can help you determine if your property is classed as an HMO.


HMO BTL properties can offer stronger yields than simpler BTL properties. This is especially true for experienced investors are confident they can create a HMO successfully.

Who is it for?

They are designed for landlords who already have experience owning a few simple properties.

HMO mortgages are intended for both individuals and businesses who are looking to invest in an HMO.

CPC Finance’s HMO valuation calculator

We have collated the data from around 90 completed HMO investment surveys by different valuers all across the country.

Our aim was to give property investors an idea of what a realistic valuation of their property could be, given countrywide averages.

Click here to download our HMO valuation calculator.




Further Information

Read our HMO factsheet for more information about HMO licenses.

Read an interview with one of our clients, Sanjay Kumar, about his HMO investment strategy.

Watch video interviews between Property Investor News, Karl Griggs, and our client Sanjay Kumar about investing in HMOs.


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

Top Tips

When sourcing funding for an HMO, you need to ensure that it can definitely be classed as one. Lenders and valuers may only view it as a family home if the conversion is not done correctly. For example, putting a lock on every room is not the same as an HMO.

As with any investment, you want to be sure that you can benefit from it long-term. You should make sure that your HMO is a high-quality property that will continue to be desirable in the long run. It’s also important to make sure that it follows regulations regarding minimum room sizes.

Local council legislation may have an impact on your property. An example would be an Article 4 Direction in the area that can have an impact on planning permission needed for conversion to an HMO.

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

+44 (0)1923 655441