HMO mortgages (loans for houses in multiple occupation) allows you to rent your property to multiple people, or multiple households.
HMO mortgages can be used for:
- Student accommodation
- Young professional accommodation
- Worker accommodation
It is usually a cheaper rate per room but combined rent of all the rooms is usually greater than renting to a single household.
HMO mortgages are usually restricted to experienced landlords rather than first time landlords as it comes with higher risks such as a higher tenant turnover and multiple tenant issues rather than a single family.
HMO mortgages in a limited company are also popular amongst landlords for their tax efficiency.