Our expert advisers will help you find the best deal for HMO Development Finance

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

Development Finance for HMOs usually applies to larger projects, although in the past couple of years there have been a number of new products launched to assist developers with some of the project costs of small refurbishments.

Development Finance for HMOs, particularly for smaller projects will tend to be paid in arrears, meaning that the developer/investor will incur the costs of the development in the first instance, then get repaid by the lender.

Development Finance facilities for larger HMOs will normally be traditional development finance, where a monitoring surveyor is appointed, and payments will be released once the borrower has achieved certain milestones throughout the project.

Our panel of specialist HMO development finance 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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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.
Bridging Finance for HMOs is often used to acquire properties, whilst the developer or investor carries out restructuring works or secures planning consent for the property.
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 HMO Development Finance?

HMO Development Finance can provide a solution to cover the costs of building out an HMO. If you are seeking to acquire a property and do not have sufficient funds to acquire the property (deposit of 15-25% normally required), along with the associated fees, then HMO development finance may fill the funding gap.

To discuss your HMO development finance requirements please get in touch with our team today, we will be pleased to assist.

What type of HMO Development finance is available?

There are two broad types of HMO development finance, facilities which are paid in arrears, i.e. when the work has been carried out, or in advance, i.e. in advance of work commencing.

HMO development finance is available from a number of lenders, with competitive rates of funding available. Typically facilities for HMO development finance with funds paid in advance apply to larger projects, normally above the sui generis planning level (consumers 7 rooms and above).

HMO development finance is available for the following types of properties: new builds, conversions along with extensions of existing properties.

Commercial Mortgages Broker regularly facilitate HMO development finance facilities for our clients, get in touch today to discuss your requirements.

How long does it take to arrange HMO Development finance?

We work closely with our HMO Development 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 HMO Development Finance facility will normally take around 4-6 weeks from initial enquiry, subject to a prompt valuation and efficient solicitors and vendor.

How much can I borrow with HMO Development finance?

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

How does an HMO Development loan work?

An HMO development 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, including confirmation of GDV
  • Valuation carried out
  • Legals commence

HMO Development Finance terms will be issued on a bespoke basis by the lender once they have evaluated the project in question. Please get in touch with our team to discuss your funding requirements.

What costs are associated with HMO Development finance?

HMO Development 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.

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