HMO (House in Multiple Occupation) purchase finance refers to the funding solutions landlords use to buy properties intended for multi-let occupation. In London, where tenant demand is strong and rental yields can outperform single lets, HMOs are a popular strategy for professional landlords and investors.
Financing an HMO purchase is more complex than a standard buy-to-let, with lenders focusing on property compliance, licensing, and landlord experience. Fraser Bond provides expert advisory to help landlords secure funding efficiently and compliantly.
Portfolio Expansion – Adding licensed HMOs to strengthen yield performance.
First-Time HMO Investment – Transitioning from single lets into multi-let strategy.
Student and Professional Lets – Securing property near universities or employment hubs.
Conversions – Purchasing properties to convert into compliant HMOs.
Refinancing – Restructuring finance on existing HMOs to release capital.
Long-Term Funding – Tailored for licensed HMOs.
Criteria – Landlords often need prior experience and strong rental forecasts.
Rates – Higher than standard buy-to-let mortgages due to increased management intensity.
Short-Term Funding – Used when properties need conversion or compliance works.
Speed – Funds can be arranged within days.
Exit Strategy – Refinance onto a long-term HMO mortgage once works and licensing are complete.
Licensing Requirements – Mandatory HMO licences from London borough councils.
Property Standards – Minimum room sizes, fire safety measures, and amenity standards must be met.
Rental Yield Modelling – Strong demand can yield 6–8%+ but must be stress-tested against costs.
Management Intensity – HMOs require more oversight, impacting lender assessment.
Lender Criteria – Many lenders prefer experienced landlords or require letting agents in place.
Fraser Bond provides landlords with tailored support for HMO purchases, including:
Finance Strategy – Advising on bridging vs HMO mortgage pathways.
Lender Access – Introducing clients to UK lenders specialising in HMOs.
Application Packaging – Preparing compliance documents, rental forecasts, and licensing evidence.
Exit Planning – Structuring refinance options for long-term stability.
Portfolio Advisory – Helping landlords integrate HMOs into wider investment strategies.
For bespoke HMO finance solutions in London, explore tailored options at FraserBond.com.
