House of Multiple Occupation (HMO's)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept Buy to Let applications on Houses of Multiple Occupation (HMOs)

Policy Notes:

Family Building Society can consider lending on 'Small Houses of Multiple Occupation (HMO)'. UK Landlords, Limited Companies and Expats can be considered.

Up to 6 bedrooms and 6 tenants considered.

Student lets considered.

Properties let to students are eligible under our HMO criteria and must be located in one of the Society’s nine approved areas: Birmingham, Cardiff, Leeds, Manchester, London, Newcastle, Oxford, Cambridge and York.

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 considered.
    • 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), properties should have a single main access and no, as per standard policy, we won’t lend on Care Homes. 

    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:
  • hmo
  • Property

Last updated:

07 November 2025

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