HMO Financing in Greenwich

From student lets near Greenwich and Deptford to professional house shares around Maze Hill, Charlton and Westcombe Park, we help landlords arrange finance for Houses in Multiple Occupation (HMO)—whether you’re purchasing, refinancing, or converting a single dwelling into an HMO.

What Counts as an HMO?

An HMO is typically a property rented by 3 or more unrelated tenants forming more than one household and sharing facilities. Large HMOs (often 5+ occupants) usually require mandatory licensing. Local rules vary, so always check the latest requirements with the Royal Borough of Greenwich before you proceed.

Types of HMO Finance

• HMO Purchase Mortgages: For buying an operating or vacant HMO.
• Refurb-to-HMO (Bridging + Term): Short-term bridging finance for works, then a long-term HMO mortgage once stabilised.
• Remortgage: Release equity, reduce rate, or move from standard BTL to a specialist HMO product.
• Light/Heavy Refurb Loans: For layout changes (e.g., adding en-suites, upgrading fire doors, improving amenity space).

Lender Criteria to Expect

• Licensing & Planning: Proof of licence or confirmation of intent; check Article 4 directions locally.
• Layout & Amenities: Minimum room sizes, FD30 fire doors, mains-linked alarms.
• EPC & Works: Minimum EPC rating compliance or upgrade plan.
• Tenant Type: Students, professionals, or mixed households.
• Experience: Some lenders require prior landlord or HMO experience; others accept strong first-time cases.
• Valuation Basis: Bricks-and-mortar or yield basis depending on size and lender.

Deposit & Affordability

• Deposit: Around 25% is typical.
• Stress Testing: ICR at a stressed interest rate; higher rental yields help pass.
• Top-slicing: Surplus personal income can sometimes support the case.
• SPV vs Personal Ownership: Lenders treat SPVs differently; seek advice on structure.

Bridge to Term — Refurb to HMO Flow

1. Appraise: Plan works, licence requirements and projected rent.
2. Bridge Loan: Complete works and compliance upgrades.
3. Stabilise Income: Let rooms, compile rent schedule and evidence.
4. Exit: Refinance onto term HMO mortgage once licensed and tenanted.

Common Greenwich Scenarios

• Student HMOs near Greenwich University and DLR stations.
• Professional multi-lets around Maze Hill and Charlton.
• Large Victorian conversions being upgraded to meet modern fire and EPC standards.

Documents You’ll Need

• ID and address proof
• HMO licence or application
• Plans, fire compliance certificates and EPC
• Rent schedule and management plan
• Portfolio statement (if multi-property landlord)

How We Work

We provide clear information and introductions. When regulated mortgage advice is required, we introduce you to an FCA-authorised adviser who can assess suitability and recommend a product for your circumstances.

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HMO Financing — Greenwich FAQs

What deposit do I need for an HMO mortgage?

Typically around 25%, though some lenders may require more depending on experience, property size and location.

Can I get HMO finance as a first-time landlord?

Yes — some lenders accept new landlords with strong personal income and a robust management plan.

Will the valuation be yield-based?

Smaller HMOs may be valued on bricks-and-mortar basis; larger ones often use investment/yield methodology.

Do I need an HMO licence before completion?

Usually yes, or evidence that the application is in process. Lenders need comfort that full compliance will be achieved.

What about Article 4 rules?

Some London areas, including parts of Greenwich, restrict new HMOs via Article 4 planning directions. Always check before committing.

Ready to Explore Your Options?

Talk to our Greenwich team about purchase, refurb-to-HMO, or refinance options. Send an enquiry and we’ll outline solutions and introduce a regulated adviser if required.