Our expert advisers will help you find the best deal for bridging finance for HMOs.

We specialise in providing HMO finance solutions, including HMO Bridging Finance.

There are a number of reasons why developers and investors seek to acquire either existing HMOs, or properties which can be converted into HMOs using bridging finance, these include: auction purchases, development works, planning issues and licensing issues which need to be implemented or overcome.

Our panel of specialist bridging finance for HMOs lenders provide high quality funding solutions and prompt decisions. Indicative finance terms will normally be provided within 24 hours. An agreement in principle can normally be expected within 48 hours, once the initial application form has been processed.

Our advisers are ex-bankers and property investors.
Finance crafted to match your needs perfectly.
Discuss your idea for a project with us and we’ll tell you how to fund it.
  • Fast indicative terms.
  • Prompt decisions from lenders.
  • Competitive rates of finance.
  • Award winning lenders on our panel.
  • Highly experienced team.
  • We put the right deal to the right lender.

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+44(0)8433 308581

Different Types of HMO Finance

A brief overview of the 3 key funding options for HMOs.
HMO Finance is a specialist area of funding which Commercial Mortgages Broker specialise. Get in touch with our highly experienced team today to discuss your requirements.
Development Finance is often required for HMOs, particularly larger projects. CMB provide a wide variety of development finance options for HMOs for our clients.
Once work is completed, then developers and investors will seek to refinance their assets on to term debt, based upon the increase in either value or income that they have generated.

Frequently asked questions

Got a question? We have the answer.

When should I consider Bridging Finance to acquire an HMO?

We regularly facilitate bridging finance to acquire properties which either have works to be carried out or require licensing or planning permission to be converted into an HMO. Bridging Finance can provide a sensible solution to:

    • Purchase an existing HMO, with potential works to improve or extend.
    • Purchasing a residential property to turn into a HMO.
    • Purchasing a commercial property to convert into a HMO.

What type of HMO Bridging finance available?

There are three different types of bridging loans which apply to acquiring and carrying out work to HMOs. These are:

  • straightforward HMO bridging loan – used to acquire the property, enabling the developer to carry out any necessary works, secure planning, or licensing.
  • HMO bridge to term finance – a bridge to term is where one lender will offer a bridge facility to acquire, then the investor/developer will carry out the necessary works, then the same lender will refinance at a price that is agreed at the outset, this means that it potentially saves money as the investor does not need to pay multiple application costs and also has reduced costs on valuations. This is a recent addition to the HMO finance marketplace, and a product that prior to COVD-19 was gaining increasing traction.
  • HMO bridge to development finance – This normally applies to a large project, where a developer will acquire a site with a bridging loan, with a view to securing additional/extended planning to turn a property into a larger HMO (above 6 lettable rooms), the property may be a commercial premises and will normally require sui generis planning, along with the relevant license from the local authority.

Commercial Mortgages Broker regularly work on all three of the above areas, and would be delighted to assist if you require funding for a project.

How long does it take to arrange HMO Bridging Finance?

We work closely with our HMO Bridge Finance funding partners to provide a prompt and efficient turnaround. Where we add value is by pushing transactions forwards across the line, we work closely with solicitors, valuers, lenders and other intermediaries to ensure that the transactions complete promptly. A bridge for an HMO can be secured in as little as 2 days, or as long as 8 weeks depending on the lenders, the vendor and the solicitors involved.

How much can I borrow with HMO Bridging Finance?

HMO Bridging Finance starts from around £100k up to around £2m+.

How does an HMO Bridging loan work?

A HMO bridging loan works in the following way:

  • Initial application made
  • Indicative terms offered – these will outline the terms of the loan, which is normally a gross amount, which the borrower will then need to deduct any fees
  • Terms accepted by borrower
  • Formal offer made by lender
  • Valuation instruction
  • Valuation carried out
  • Legals commence

Normally interest for HMO Bridging Loans is rolled up, which means that it is deducted from the loan at the outset, the capital and interest is then repaid upon refinancing the asset once the relevant amendments have been made to the property.

What costs are associated with HMO Bridging Finance?

HMO Bridging Finance Finance Costs will vary depending on the loan to gross development value (LTGDV) that you require, typically the higher the loan amount against the gross development value the higher the cost of funding. Rates start from around 0.4% per month.

Additional costs that investors and developers need to consider include:

  • Acceptance fees.
  • Broker fees.
  • Monitoring surveyor fees if applicable.
  • Exit fees.
  • Valuation fees.
  • Legal fees.


Leverage potential through property.
  • Highly experienced bank trained team.
  • £1bn+ of assets funded to date.
  • Large panel of lenders.
  • Property experts.

+44(0)8433 308581