How Lenders Assess HMO Mortgage Applications
In the UK property market, HMOs (houses in multiple occupation) are a popular choice for investment strategy. By renting out individual rooms to multiple tenants, instead of the traditional single let model, landlords make more money than regular buy-to-let properties. Also, HMO mortgage lenders have to be extra cautions when considering applications since there are […]
Debt Servicing Ratios in Complex HMO Finance Deals
For any HMO mortgage lender, one of the most important things to look at is the Debt Service Coverage Ratio (DSCR). Anyone looking for an HMO mortgage in the UK needs to know how lenders calculate the coverage, consider all costs, and put their forecast through a stress test. In some complicated HMO financing arrangements, […]
HMO Mortgage Challenges under Tightened UK Rental Rules
In the UK, investing in property has always been a great way to build wealth over time. But recent changes to the rules and limits on lending have made things a little harder for landlords who are interested in HMOs or serviced accommodations. Here, we break down the main problems with getting an HMO mortgage […]
Everything You Should Know About HMO Finance: A Comprehensive Guide for Landlords in 2025
Houses in Multiple Occupation (HMOs) are a popular investment choice for landlords looking to maximise rental yields. These properties house three or more unrelated tenants who share facilities like kitchens and bathrooms, creating higher income potential compared to standard buy-to-let properties. When financing an HMO, landlords typically need a 15-25% deposit, and must navigate special […]
What is a Commercial Finance Broker?
This video explains the role of a Commercial Finance Broker in the UK, the type of clients they work with and also the types of funding they secure for their clients. As well as working with Homeowners, Property Investors and Developers to provide things such as Bridging Loans and Development Finance, a Commercial Finance Broker […]
Views sought on new rules to limit spread of student houses in Brighton and Hove
A public consultation on plans to limit the number of shared houses across Brighton and Hove starts on Monday (3 June). Brighton and Hove City Council is looking at whether to require owners of even smaller shared houses to have to seek planning permission. At the moment, they can rely on “premitted development rights” to […]
Plan to convert Worcester B&B into 13-bed HMO looks set to be approved
A PLAN to convert a city bed and breakfast into a 13-bed house of multiple occupation (HMO) looks set to be approved. The application would see Wyatt Guest House in Barbourne Road transformed into the apartments with a number of shared facilities. The guest house, which sits in the Shrubbery Avenue conservation area and is […]
Planning inspector overrules council on seven shared houses in Brighton
Neighbours objected and the council said no – but seven more Brighton properties can be used as shared houses after planning permission was granted on appeal. All seven are in wards where Brighton and Hove City Council restricts the conversion of family homes into houses in multiple occupation (HMOs). And all seven are in wards […]
Rogue landlord fined over £7k after council uncovers llegal HMO in Luton town centre
A rogue landlord has been fined over £7,000 after Luton Borough Council uncovered an illegal house of multiple occupation (HMO) in the town centre On Wednesday, March 20, Prestige Luton Ltd, of Britannia House, Leagrave Road, pleaded guilty at Luton Magistrates Court to charges of managing an HMO at 135 Wellington Street and breaching regulations […]
FOI shows how little councils know about unlicensed HMOs
Government plans to protect tenants from poor living conditions through the expansion of mandatory HMO licensing look set to fall way short of their ambition. Figures obtained by Simple Landlords Insurance reveal the majority of local authorities don’t know how many unlicensed HMOs are in their area – let alone where they are – leaving them […]
Tighter regulation makes HMO investment an area for specialists
The Licensing of Houses in Multiple Occupation Order 2018 came into effect on 1 October, changing which residential properties will be categorised as houses in multiple occupation (HMO) for mandatory licensing purposes. From now on, properties occupied by five or more people, forming two or more separate households, will be classified as HMOs. The Residential Landlords Association […]
Agents told to read small print in local licensing schemes as more fall foul of new rules
Landlords and agents are being increasingly caught out by having to license small shared properties as Houses in Multiple Occupation – only for landlords to be told that they are in breach of their mortgage conditions and are not covered by insurance. Properties that now rank as HMOs requiring licences could be as small as […]
Buy To Let Investor Fined For Incorrect Licensing In Nottingham
A private buy to let investor has been told he must pay almost £6,500 for renting four properties in Nottingham without a license. Rogue landlord Dilip Gohil was prosecuted after his failure to acquire the correct licensing for his houses in multiple occupation (HMOs). This was in spite of the fact that each property boasted […]
Bath Landlords Fined For Operating HMO Without Licence
Two Bath private landlords have been told that they must pay more than £16,000 due to their failure to obtain the correct House in Multiple Occupation (HMO) licensing. Elizabeth Vowles, 48, and Hayley Book, 55, both from Weston pleaded guilty at Bath Magistrates’ Court to their licensing failure, deemed an offence under the Housing Act […]