UK’s Premier HMO Mortgage Brokers – Fox Davidson
Fox Davidson is a leading HMO mortgage broker in the UK, helping landlords and property investors secure tailored HMO mortgages for Houses in Multiple Occupation (HMOs). With the UK’s private rental sector housing 19% of households and generating average yields of 5.7%—with HMOs achieving 8–12% (Land Registry, 2024)—HMO investments deliver superior returns compared to standard buy-to-let properties. Whether you’re converting a Victorian terrace in Manchester, acquiring a multi-unit block in Birmingham, or expanding a portfolio in Leeds or Cardiff, our award-winning, independent brokerage accesses over 100 specialist lenders to deliver competitive rates and navigate complex HMO regulations.
Why choose Fox Davidson as your UK HMO mortgage broker?
- Exclusive Lender Access: Over 100 specialist HMO lenders, including broker-only products not available on high streets.
- Regulatory Expertise: Deep knowledge of UK HMO licensing, Article 4 regulations, and lending criteria.
- Competitive Rates: For experienced landlords and first time landlords
- Rapid Decisions: Decisions in principle often within 2 hours for fast-moving markets.
Why Invest in HMO Properties in the UK?
The UK’s HMO market is thriving, driven by rising rental demand and a growing student population of 2.4 million (HESA, 2024). HMOs—properties rented to 3+ unrelated tenants—offer yields of 8–12%, significantly higher than the 5.7% average for standard buy-to-let properties, making them a top choice for investors navigating rising interest rates (~4% base rate, 2025).
Key highlights:
- High Yields: HMOs in university cities like Manchester, Birmingham, Leeds, and Bristol yield 8–12%.
- Rental Demand: Private renting is projected to grow 15% by 2030 (ONS, 2024).
- Property Growth: UK house prices rose 4.3% annually since 2020 (Land Registry).
- Portfolio Scalability: HMOs suit first-time and experienced landlords expanding in high-demand areas.
An HMO mortgage unlocks these high-yield opportunities, and Fox Davidson ensures you secure the best deal tailored to your investment goals.
What is an HMO Mortgage?
An HMO mortgage is a specialised buy-to-let loan for properties with multiple unrelated tenants, requiring unique lending criteria compared to standard mortgages. Lenders focus on rental income (125–145% of mortgage payments), HMO licensing, and client profile. As expert mortgage brokers for HMO properties in the UK, we source deals from specialist buy to let lenders offering up to 80% loan-to-value (LTV) and competitive rates for properties like student lets, multi-unit blocks, or large HMOs.
Key benefits of HMO mortgages in the UK:
- Achieve rental yields of 8–12% in high-demand cities.
- Finance conversions or purchases (£300k–£1m+ average).
- Specialise in company structures including multi-layered structures
HMO Mortgage Eligibility: Who Can Apply?
Most lenders require:
- Deposit: 20–25% of property value
- Rental Coverage: 125–145% of mortgage payments (e.g., £1,000 mortgage needs £1,250–£1,450 rent).
- Credit Score: Good credit preferred, though some lenders accept minor issues.
- Experience: Landlord experience helps, but first-time landlords can qualify with a few lenders
As specialist HMO mortgage brokers, we guide first-time and experienced landlords through lender criteria, ensuring robust applications for properties in Manchester, Birmingham, or beyond.
How to Get an HMO Mortgage with Fox Davidson. Our streamlined process simplifies HMO financing across the UK:
- Property and Income Assessment
Review rental projections, portfolio details, credit, and licensing needs to match lenders.
- Specialist Lender Matching
Source from over 100 lenders, securing decisions in principle within 2 hours for urgent deals.
- Application Management
Handle paperwork, valuations, and lender communications for 6–8 week completions.
- Ongoing Portfolio Support
Provide remortgage and expansion options to optimize your HMO investments.
Contact us to discuss your HMO project, from a Leeds student let to a London multi-unit block.
Typical requirements:
- HMO licence (mandatory for 5+ tenants, varies by council)
- Valid EPC – E or above (rising to C in 2030)
- Proof of income
- Property portfolio
HMO Mortgage Options Across the UK
We offer tailored solutions for diverse HMO projects:
- Standard HMO Purchase: Competitive rates from across the market, 20–25% deposit, for small (6 or less rooms) HMO properties in cities such as Manchester or Bristol.
- HMO Remortgage: Equity release or rate reduction for existing HMOs.
- Complex HMO Finance: For large HMOs (7+ tenants), multi-unit freehold blocks, or sui generis properties requiring specialist lending.
- First-Time Landlord HMO Mortgages: Support for new investors with the right credentials
- Portfolio Refinancing: Single or multiple lender funding for multiple HMOs across the UK.
Considering a quick purchase? Explore bridging loans for short-term finance to secure properties fast.
HMO Mortgage Costs and Risks
Costs to expect:
- Higher Rates: Due to increased tenant turnover and management risks
- Deposits: 20–25% (e.g., £75k–£125k for £300k–£500k properties).
- Fees: Arrangement, valuation, and legal fees, plus HMO licensing costs (£500–£1,500 per council).
- Ongoing Expenses: Maintenance, management fees, and potential void periods.
Risks to manage:
- Tenant Turnover: Higher in HMOs, mitigated by targeting student or professional markets.
- Regulatory Compliance: Fines for missing HMO licences or Article 4 violations.
- Maintenance: Increased wear from multiple tenants, requiring financial buffers.
Fox Davidson’s expertise helps you minimise costs and risks while maximising rental income.
Our Success Stories: HMO Mortgages Across the UK
- Manchester Student HMO: Secured a £350k mortgage, 80% LTV, yielding 12% for a 5-bed let (completed in 6 weeks).
- Birmingham Portfolio Expansion: Refinanced 6 HMOs, releasing £1.2m for new properties, saving £3,200/month (April 2025).
- Cardiff Multi-Unit Block: Funded a £500k conversion, 75% LTV, with a 10% yield.
- Leeds First-Time Landlord: Arranged a £300k HMO mortgage, 20% deposit, for a new investor with a 9% yield.
Our clients trust our market access and knowledge.
Why Choose Fox Davidson as Your UK HMO Mortgage Broker?
- Regulatory Expertise: In-depth understanding of UK HMO licensing and Article 4 rules across councils.
- Exclusive Lenders: Over 100 specialist funders for complex HMO scenarios, including limited companies.
- Award-Winning Service: Multi-award winners with 20+ years in property finance.
- Market Access: Access to specialist lenders, FCA-regulated, with 5-star reviews.
- Personalised Support: Pre-purchase consultations and rapid decisions for fast markets.
Meet our HMO mortgage broker team
Frequently Asked Questions (FAQs) on HMO Mortgages in the UK
Typically 20–25% (£60k–£125k for £300k–£500k properties), though 15% is possible for experienced landlords with strong yields.
Yes, with specialist lenders and a robust business plan, supported by our expert guidance.
6–8 weeks, with decisions in principle often within 2 hours for urgent purchases.
Mandatory for 5+ tenants; smaller HMOs (3–4 tenants) vary by council. We advise on local regulations.
8–12% on average, compared to 5.7% for standard buy-to-let (Land Registry, 2024)
Yes, we offer remortgaging to release equity or lower rates—see portfolio finance
From 4.5–6.5%, depending on property, LTV, and landlord experience.
Email enquiry@foxdavidson.co.uk for more answers.
Secure Your HMO Mortgage in the UK Today
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Fox Davidson’s HMO mortgage brokers deliver competitive rates and expert guidance across the UK.
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