What is a HMO

HMO stands for House in Multiple Occupation. It refers to a property rented out by at least three unrelated people who share common areas like the kitchen or bathroom. HMOs are often used for student housing or shared accommodation to maximize rental income.

Why Choose Octagon for HMO Mortgages?

HMO finance requires specialist knowledge, lender access, and careful structuring. We work with lenders who understand complex income models, licensing requirements, and property layouts. From first-time HMO investors to large portfolios, we help secure competitive funding with minimal delays.

What’s the difference between a buy to let mortgage and a HMO mortgage?

• Designed for standard rental properties rented out to a single household or family.
• Typically easier to arrange with fewer regulations.
• Generally have lower interest rates and simpler lending criteria than HMO mortgages.
• Suitable for landlords who want a straightforward rental income stream.

Please explain a HMO Mortgage:

At Octagon Commercial Finance, we explain that a key distinction between an HMO mortgage and a traditional buy-to-let mortgage is the potential for significantly higher rental returns with HMOs. However, managing an HMO requires more hands-on oversight to maintain its quality. Typically, rents on HMOs are inclusive of utility bills such as water, gas, and council tax.

While not all buy-to-let lenders offer HMO mortgages, the lending market has expanded in recent years. More lenders, including those we work with at Octagon Commercial Finance, are now open to financing smaller HMOs, depending on the tenancy agreements involved.

Octagon are here to provide you with the expertise and guidance you need to make the right financial decisions.

At Octagon Commercial Finance, we commit to being your trusted partner in managing the complexities of property financing, working diligently to surpass your expectations and support you in reaching your financial objectives.