Houses in Multiple Occupation (HMO)

TMW HMO definition

The Mortgage Works consider the following types of property as a HMO

  • A property occupied by five or more people
  • A property with five to seven lettable rooms in an area commensurate with multi letting

Properties subject to selective licencing are only classified as a HMO where at least one of the above conditions are met.

A property occupied by 4 people or fewer, even if licenced and sharing the characteristics of a HMO, is not eligible for HMO lending. The rental assessment will be based on a single family figure and a non HMO product should be selected.


  • For all HMO applications, including Further Advances, a Specialist Security valuation will be required, which is payable by the client. Press here to view our valuation fees.
  • For Further Advance and Remortgage applications, before a valuation can be carried out, we'll require a copy of the HMO licence. This needs to be attached to the case where the case Requirement has been generated. If this isn’t received within 15 working days, the application will be cancelled. 
  • Please note that the status of a property as an HMO will be determined by the valuer.


  • Minimum property value is £100,000
  • Maximum 75% LTV. See our table for maximum loan amount per property.
  • 175% Interest Cover Ratio (ICR) applies to all HMO applications, regardless of tax status
  • Landlord experience: at least 2 years as a standard BTL landlord or 1 year as a HMO landlord
  • Let to Buy applications not accepted
  • For valuation purposes, rental cover will be assessed on a multi-tenanted basis
  • All let properties will be subject to an Assured Shorthold Tenancy agreement, or either a Short Assured Tenancy agreement, Private Residential Tenancy Agreement in Scotland or Occupation Contract in Wales of a minimum of 6 months, maximum of 36 months (except if the tenancy is a Private Residential Tenancy (Scotland only) where there is no maximum). Single and multiple tenancy agreements accepted
  • A property must have no more than four habitable storeys and no more than one kitchen
  • Properties consisting of more than one self-contained unit under a single title are not acceptable
  • The property must offer a communal living room. A large open plan kitchen/living room if it is big enough to meet reasonable occupant needs can be considered a communal room.

Please see our general criteria for full details.

Please note that the status of a property as an HMO will be determined by the valuer.