HMO First Time Landlord

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can consider a Buy to Let application on an HMO property from a first time landlord.

Policy Notes:

Family Building Society can consider lending on 'Small Houses of Multiple Occupation (HMO)'. UK Landlords, Limited Companies and Expats can be considered. HMO first time landlords are not acceptable

Warning Notes:

• • Only available to experienced landlords. 
  • Available for properties in England and Wales 
  • The primary applicant should already be a residential homeowner occupier and experienced landlord. 
  • Maximum loan to value on any one HMO property: 75% purchase or remortgage. 
  • Normal Interest Cover ratios (145% for new borrowing) will apply. 
  • Maximum of 6 lettable bedrooms 
  • The primary applicant must be able to demonstrate a primary income (or savings) to cover voids.  
  • Student lets acceptable
  • Property must be let on an Assured Short hold Tenancy basis in England, on a Standard Contract in Wales.  
  • Each of the tenants must have an individual APT agreement and the right to use shared parts of the property, or a joint APT agreement over the whole of the property. 
  • Studio apartments will not be considered for Buy to Let or HMO purposes. 
  • Properties with more than one kitchen are not acceptable. 
  • The Society’s specialist valuers will assess an HMO property’s market and rental value based on 100% occupancy of all the lettable rooms. 
  • Properties should be easily converted back into single family homes (e.g. within 1 to 2 months) and properties should have a single main access.
  
  Confirmation must be obtained as to whether there is a need for a Mandatory HMO license, or if the Local Authority where the property is situated has additional Licensing or planning requirements. The Conveyancer must ensure these are in place by completion.
  

Criteria categories:

• Applicant
• hmo

Last updated:

07 November 2025