HMO mortgages for limited companies
Room-by-room lets earn more and are underwritten harder. 26 of the 28 buy-to-let lenders on our panel accept HMOs, and they differ on everything that matters: room-count caps, valuation basis, licensing requirements and how much experience they want behind the application.
We introduce your company to the lenders whose HMO criteria your property and experience actually fit. Free to you, and nothing goes anywhere without your say-so.
The HMO panel in numbers
26
of 28 buy-to-let lenders accept HMOs
25
also take multi-unit freehold blocks (MUFB)
24
require no landlord experience for standard lets
18
accept minor adverse credit older than 24 months
14
lend to ex-pat directors
12
will lend to a trading company, not only an SPV
Counts are distinct lenders on our panel with at least one live product matching the criterion, checked September 2026. Panel composition changes over time, and meeting a criterion is not an offer: every case is subject to the lender's own checks.
Where HMO deals live or die
Room count
Caps differ lender to lender: several stop at six lettable rooms, the specialists go past ten. The cap decides your shortlist before anything else does, so it is the first thing we check.
Valuation basis
A six-bed terraced HMO can be valued as a house or as an income-producing investment, and the two numbers can be far apart. Lenders differ on which basis they instruct, which changes the loan the same property supports.
Licensing
Mandatory licensing bites at five occupants from two households, and many councils layer additional schemes on top. Lenders want the licence, or a credible route to one, underwritten into the deal.
Experience
Plenty of lenders want a year or two of landlording before a large HMO. A smaller HMO as a first step, or bridging into a refurbished HMO then refinancing, are both routes lenders on the panel fund.
A note on who we take on
We currently work with UK limited companies and LLPs only, for business and commercial purposes. We complete non-regulated introductions and are not authorised by the Financial Conduct Authority. We do not arrange regulated mortgage contracts or consumer buy-to-let.
The panel behind this page
HMO cases go to the 26 lenders on our buy-to-let panel of 28 whose criteria cover the property's room count and your experience, part of 200+ lenders across all products. That range matters more than any single rate: the lender that suits a five-year-old limited company with clean accounts is rarely the one that suits a seasonal business or a director with a past blip, and a broker with a shallow panel has to force your case into whichever box it holds.
Names you may recognise on the panel
Examples from our panel as at September 2026, not an endorsement of any lender and not the full list. We check criteria first and put your case only to lenders whose requirements you fit. The full panel by product is in our lender directory, and how we choose is set out on our how we work page.
Frequently asked questions
How many lenders offer HMO mortgages?▼
On our panel, 26 of the 28 buy-to-let lenders accept houses in multiple occupation, out of 200+ lenders across all products. Room-count caps vary widely: some stop at six lettable rooms, others take large licensed HMOs well beyond that. Figures checked September 2026; panel composition changes over time.
Can a first-time landlord get an HMO mortgage?▼
Harder than a single let, but not closed. 24 of our buy-to-let lenders require no landlord experience at all, and a subset of those will consider a smaller HMO as a first property, usually at a lower loan-to-value. Lenders who go bigger on room counts typically want a year or more of letting experience first.
How are HMOs valued for a mortgage?▼
Smaller HMOs are usually valued as ordinary houses (bricks-and-mortar value). Larger or purpose-converted HMOs may get a commercial-style investment valuation based on the income they produce, which can come out higher or lower than the house next door. Which basis applies is a lender and valuer decision, and it materially changes how much you can borrow, so it is worth knowing before you apply.
Do I need an HMO licence before applying?▼
Licensing is a council matter, separate from the mortgage: mandatory licensing applies to HMOs with five or more occupants from two or more households, and many councils run additional or selective schemes on top. Lenders will want to see the licence, or clear evidence one is obtainable, before completion. Buying an unlicensed property to convert is common, but the lender will underwrite the plan, not just the bricks.
Does adverse credit rule out an HMO mortgage?▼
Not by itself. 18 of our buy-to-let lenders accept minor adverse credit older than 24 months. Recent or heavier issues narrow the field faster on HMOs than on single lets, because fewer lenders play in the space to begin with. Our bad credit guide covers how lenders band severity.
Is an HMO mortgage FCA regulated?▼
Lending to a limited company for a genuine letting business is generally unregulated. Regulated cases, such as a property you or family will live in, are a different product and we do not arrange them. CapExpand introduces limited companies and LLPs on a non-regulated basis and is not an FCA-authorised firm.
Important information
CapExpand Ltd is not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. We work with UK limited companies and LLPs only, for business and commercial purposes. We are not a lender and we do not provide financial, tax or legal advice. We do not arrange regulated residential mortgages, consumer buy-to-let mortgages or any other regulated mortgage contracts. We work with a panel of lenders whose particulars are available on request, and we receive commission from the lender if a deal completes, at no cost to you. All lending is subject to status, valuation where applicable and the lender's own checks.
Registered office: Pure Offices, Lake View Drive, Annesley, Nottingham, NG15 0DT. Company No. 14433858.
Tell us about the property
Rooms, location, licence position and your letting history. We come back with the lenders whose HMO criteria fit, usually within a day.