Who we work with


Houses in Multiple Occupation (HMO) are properties that are rented out by people from more than one household on a room-by-room basis. Although HMO’s in general generate more income than a traditional Buy to Let property  they’re also more complex, too, with licensing, planning permission and huge amounts of legislation to comply with. 

Friends Capital have existing relationships with specialist HMO lenders and are experts in advising on buy to let and HMO mortgages. We can help you find the best possible mortgage deal. We will review your personal circumstances and then search the entire market to ensure you get the best mortgage rates possible. We will then deal with all the paperwork, submit your mortgage application, liaise with your mortgage lender and solicitor, and ensure that your mortgage application is completed as quickly as possible. We can:  

  • Save you money on your mortgage deal 
  • Offer a free consultation 
  • Offer unbiased financial advice 
  • Save you time in your mortgage application 
  • Give you a dedicated account manager who is available to you through the process 

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HMO Mortgages

HMO’s are usually considered more profitable than standard rental property. Because HMOs are rented by individual tenants, they’re more than three times more profitable than standard buy-to-let properties. And HMO landlords are able to avoid costly void periods, too – because when one tenant moves out, they still have the income from the other rooms coming in while they find a replacement.

Often referred to as a house-share, they are a popular housing solution for students and young professionals, as the rent is usually more affordable than studio or small flats. The primary benefit for landlords is that multiple rents generate higher yields than standard buy to let properties.

With new HMO mortgages released on a weekly basis, it is important to get the most up to date information on the current Best HMO Mortgage Rates.

HMOs require a licence from the local council in which the property is located, which is valid for five years.

HMO Criteria

As HMOs are considered a specialist buy to let investment property type, not all lenders include them in the criteria. A mortgage broker can help. Due to the complex nature of HMOs, the majority of buy to let lenders will only offer HMO mortgages to experienced landlords.

Some lenders will accept first-time landlords, but this will usually require you to use a property agent to manage the property. The criteria is usually:

  • The number of bedrooms to be let. The majority of HMO buy to let lenders accept a maximum of five to six bedrooms. Some go up to 20 rooms.
  • Location
  • Your experience as a landlord (including HMO experience)
  • Whether you’ll be managing the property yourself or using managing agents
  • If the property has or needs a licence
  • Expected or actual rental income
  • If there is one or multiple AST agreements
  • Tenant type: while HMOs are frequently used for private student accommodation, it’s not a given that a lender will include both on the criteria, so it’s always worth checking with a mortgage broker. While lenders have become much more accepting of different tenant types (99% now accept tenants on benefits), some have tighter restrictions than others.
  • How much you want to borrow
  • Type of rate you prefer (tracker or fixed)
  • Your credit rating
  • Whether you’ll be investing via your personal name or a limited company

Some lenders use the traditional surveyor inspection combined with comparing it to like for like properties in the same area. If there aren’t any other HMOs in the area, then the valuation will be based on the price achieved as if it were a single dwelling.

How Can Friends Capital Help with HMO’s?

Friends Capital have pre-existing relationships with HMO lenders. We can search the entire market and get access to the best and most exclusive deals available. Then we will choose the deal that are most appropriate to your personal circumstance. We can:

  • Find you a lender that specialises in HMO’s
  • Find you a deal appropriate to your personal circumstance
  • Offer unbiased financial advice
  • Give advice on what mortgage lenders will require, including giving you advice on an exit strategy for the mortgage end
  • Give you a no obligation mortgage quote
  • Deal with all the paper work, liaise with the lenders and solicitors. We will also make sure the application goes through as quickly as possible

Two Steps to Contacting Friends Capital 

Step 1 

Either call us, email us , book an appointment online or request a call back below.

Step 2 

One of our friendly advisors will either call you back within 24 hours (usually the same working day), or will take details from you in order to best deal with your situation. 

When you speak with us, we will take a ‘fact find’. At this stage we take basic details about your situation. We will then search the whole of the market and find you the best deal available. 

If you are happy with the deal that we offer, we will then contact the lender for you and get you what is called a ‘decision in principal’. 

If you’re happy with the decision in principal then we will secure this deal for you and deal with the application for you on your behalf. 

We aim to get the lowest mortgage rates on the market

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