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

We specialise in providing HMO mortgages and finance solutions, including HMO Term Finance.

HMO Mortgages are the long term funding solution once an HMO has been acquired either using a developers own cash, HMO Bridging Finance or HMO Development Finance.

HMO Mortgages will provide a long term financing solution, with both fixed rate and variable rate options available, with HMO term finance solutions available from 5-25 years.

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.
Development Finance is often required for HMOs, particularly larger projects. CMB provide a wide variety of HMO development finance options for our clients.

Frequently asked questions

Got a question? We have the answer.

When should I consider a HMO Mortgage?

HMO Mortgages are normally implemented once the development and planning works for an HMO project have been completed. Ideally at this point the property will also be let, then it is easier to prove to the lender and the valuer the income which the property will generate.

HMO Mortgages will provide a long term financing solution to the developer/investor.

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

What type of HMO Mortgage is available?

There are two main types of HMO Mortgages. These are:

  • HMO Fixed Rate Mortgages – Offering a fixed interest rate for a period of time, normally between 1-5 years, although bespoke options may be available from different lenders.
  • HMO Variable Rate Mortgages – Normally tracks LIBOR (London Interbank Offered Rate) plus a margin.

To discuss your HMO Mortgage requirements, please get in touch with our team today.

How long does it take to arrange a HMO Mortgage?

We work closely with our HMO Mortgage 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. An HMO Mortgage facility will normally take around 6-8 weeks from initial enquiry, subject to a prompt valuation and efficient solicitors and vendor.

How much can I borrow with HMO Mortgages?

HMO Mortgages starts from around £50k up to around £5m+.

How does an HMO Mortgage work?

An HMO Term Facility works in the following way:

  • Initial application made
  • Indicative terms offered – these will outline the terms of the loan
  • Terms accepted by borrower
  • Formal offer made by lender
  • Valuation instruction, including confirmation of GDV
  • Valuation carried out
  • Legals commence

HMO Mortgage 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 Mortgages?

HMO Mortgage Costs will vary depending on the loan to value (LTV) 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
  • Legal fees
  • Exit fees
  • Valuation fees
  • Legal fees

What LTV (Loan to Value) can I expect from HMO Term Finance?

HMO Term Finance is normally available up to 85% LTV, subject to the property, the income and a number of other factors.

Please get in touch to discuss your HMO Term Finance requirements today, and a member of our team will be very pleased to help.

How Are HMOs Valued?

There are two different valuation methods available for HMOs. These are:

  • Bricks and mortar valuation – the value of the underlying property, ignoring the income which it generates – normally applies to smaller HMOs
  • Investment valuation – this is a valuation which is calculated based upon the income which the property generates, normally this will be a yield based calculation.

Click the following link for further details on HMO Valuations.


Leverage potential through property.
  • Highly experienced bank trained team.
  • £1bn+ of assets funded to date.
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+44(0)8433 308581