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Get Your HMO Mortgage Approved Fast with Auction Finance

Looking to secure fast approval for your HMO mortgage? Auction Finance offers mortgage solutions for purchasing, remortgaging, or capital-raising on HMO properties held in limited companies or partnerships. With up to 85% LTV, we provide competitive rates and quick decisions, helping you unlock your investment potential efficiently.

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What is an HMO?

What Are HMO Mortgages?

HMO (House in Multiple Occupation) mortgages are designed for landlords who rent properties to multiple tenants forming two or more households. With Auction Finance’s extensive knowledge of the market, we guide you to lenders who understand the complexities of HMO investments, ensuring compliance with planning and licensing requirements.

Whether you’re managing a small HMO or a large licensed property, we make the process straightforward and efficient.

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Auction Finance
Bridging Loans
Commercial Mortgage
Development Finance
Second Charge
Secured Loans
BTL Mortgages
HMO Mortgage

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How Auction Finance Helps Landlords

  • Up to 85% LTV: Access high loan-to-value options to maximise your borrowing potential.
  • First-Time Landlord Support: Guidance for those new to the HMO market.
  • Licensing & Compliance Expertise: Assistance with mandatory and additional licensing requirements.
  • C4 & Sui Generis Knowledge: Help navigating planning permissions specific to HMO properties.
  • Connections to Specialist Lenders: Benefit from our extensive network of lenders offering competitive rates and terms.

Licensing and Planning Permissions: What You Need to Know

  • Mandatory Licensing
  • A property must be licensed as an HMO if It is rented to 5 or more tenants from 2 or more households, and the tenants share communal facilities (e.g., kitchens, bathrooms).
  • Additional Licensing
  • Some councils enforce additional licensing for smaller HMOs, even if they house fewer than 5 tenants. This is often required in areas with a high density of rented properties.
  • Planning Permissions:
  • C4 Planning Use Class: Covers small HMOs with up to 6 tenants. Usually does not require additional planning permission if the property already operates as an HMO.
  • Sui Generis:Properties housing 7 or more tenants fall into this category and require specific planning permission.
  • Navigating these regulations can be complex, but our expertise ensures you’re matched with lenders who understand these requirements.

Who Can Benefit from HMO Mortgages?

  • First-Time Landlords: Start your property investment journey with the right support.
  • Experienced Investors: Expand your portfolio with high-yield HMO properties.
  • Portfolio Landlords: Convert existing properties into HMOs for increased rental income.

Benefits of Choosing Auction Finance

  1. Higher Rental Yields: HMOs often generate significantly higher returns compared to standard buy-to-let properties.
  2. Diversified Risk: Income from multiple tenants reduces financial risk if one tenant leaves.
  3. Expert Lender Matching: We connect you with lenders specialising in HMO finance, ensuring the best terms for your circumstances.

Challenges of HMO Mortgages

Licensing and Compliance:

Navigating legal requirements can be time-consuming and costly without the right guidance.

Higher Management Needs

More tenants mean increased responsibility for maintenance and administration.

Planning Restrictions

Securing appropriate permissions can be a hurdle without proper support.

Auction Finance

Auction Finance uses its expertise to minimise these challenges, helping you focus on the growth of your investment.

Case Study: Securing the Right Lender for an HMO Investment

Scenario: A first-time landlord, Emma, wanted to purchase a 6-bedroom property for sharers in a high-demand area.

Challenge: Emma lacked experience, and the property needed a mandatory HMO licence.

Solution: Auction Finance matched Emma with a lender accepting first-time landlords and provided advice on ensuring compliance with local licensing and C4 planning requirements. Emma secured an 85% LTV mortgage and achieved a rental yield of 9.5%

Start Your HMO Journey Today

At Auction Finance, we specialise in helping landlords secure HMO mortgages that match their needs and circumstances. With our deep understanding of licensing, planning, and lender criteria, we simplify the process, saving you time and hassle.

  • Auction Finance specialises in structured financing solutions for property auctions. Our expert team prioritises a client-focused approach, offering competitive rates and flexible options for quick and efficient funding. Whether you're bidding on residential, commercial, or land, we are committed to supporting your auction success.

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  • THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
  • YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
  • We are a credit broker not a lender.
  • The FCA does not regulate most Buy to Let mortgages.
  • Authorised and regulated by the Financial Conduct Authority FCA reg. 994617.
  • 5 Century Court, Tolpits Lane, Watford, WD18 9PX. Registered in England, No 14667048
  • We always aim to provide a high-quality service to our customers. However, if you encounter any problems and we are unable to resolve them, you can take your complaint to an independent ombudsman. Our advice is covered under the Financial Ombudsman Service.

(C) 2025 Auction Finance is a trading name of Mortgage Knight Ltd

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