Offering a comprehensive and competitive range of House in Multiple Occupation (HMO) mortgages, our HMO mortgages will help you make a success of your investment.

At a glance:

  • Borrow between £100,000 and £3,000,000
  • Lending is provided for a wide range of HMO properties.
  • Purchase a new property or remortgage an existing HMO property
  • Mortgage terms between 5 and 25 years
  • Borrow up to 70% of the property value
  • Choose from Fixed or Variable interest rates and the borrowing term offered for our HMO mortgages. To know more please visit your nearest branch

Your Buy-To-Let Property may be repossessed and/or a receiver of rent appointed if you do not keep up payments on your mortgage

House in Multiple Occupation (HMO) Interest Rates

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(as of 14/09/2016, rates may be withdrawn at any time)

Product (available for Individuals/SPV's/LLP's/Ltd Companies) Up to
60% LTV
Up to
65% LTV
Up to
70% LTV
Arrangement Fee
Simple HMO (Up to 6 bedrooms, 6 unrelated tenants, 2 storeys)
3 Year Fixed 3.44% 3.64% 3.74% 1.25%
5 Year Fixed 3.79% 3.99% 4.15%
3 Year Tracker 3.19%
(BBR + 2.94%)
3.29%
(BBR + 3.04%)
3.39%
(BBR + 3.14%)
5 Year Tracker 3.49%
(BBR + 3.24%)
3.59%
(BBR + 3.34%)
3.69%
(BBR + 3.44%)
Large HMO (Up to 10 bedrooms, 10 unrelated tenants, 3 storeys)
3 Year Fixed 3.94% 4.14% Not Available 1.25%
5 Year Fixed 4.24% 4.34%
3 Year Tracker 3.69%
(BBR + 3.44%)
3.79%
(BBR + 3.54%)
5 Year Tracker 3.99%
(BBR + 3.74%)
4.09%
(BBR + 3.84%)

The following will apply to all mortgage products:

All products will transfer to SBI's Standard Variable Rate (SVR) at the end of the product's incentive period: 4.49%

Early Repayment Charges

Product Year 1 Year 2 Year 3 Year 4 Year 5
3 Year Fixed 3% 2% 1% 0% 0%
5 Year Fixed 4% 4% 3% 3% 2%
3 Year Tracker 2% 2% 0% 0% 0%
5 Year Tracker 2% 2% 0% 0% 0%

General Product Terms and Conditions

  Simple HMO Large HMO
Applicant Age Minimum age 21. At least one borrower must be under the age of 65 at the time of application.
(Maximum age of 80 at the end of mortgage term)
Number of Applicants Up to 4 applicants allowed.
Applicant Experience Primary applicant must have been a landlord for at least 3 Years and has previously owned a HMO or similar multi-let property for at least 1 year
(SBI may consider applicants who do not meet this criteria if it is confirmed that the property will be managed by a professional agent)
Term Between 5 and 25 years
Repayment Method Capital Repayment or Interest Only
Minimum Loan Size £100,000 £250,000
Maximum Loan Size (By LTV) 70% Up to £500,000 Not Available
65% £500,001 to £1,000,000 Up to £1,000,000
60% £1,000,001 to £1,250,000 £1,000,001 to £1,250,000
50% £1,250,001 to £3,000,000 £1,250,001 to £3,000,000
Rental Calculation 125% of monthly interest payment at product rate + 1% or 5% (whichever is higher, assessed on a multi-let basis) 130% of monthly interest payment at product rate + 1% or 5% (whichever is higher, assessed on a multi-let basis)
Acceptable Tenants SBI will NOT accept HMO properties that contain any social housing tenants
HMO Licensing Requirements Confirmation must be obtained as to whether there is a need for a Mandatory HMO licence or if the Local Authority where the property is situated has additional Licensing or planning requirements.
HMOs requiring Mandatory license will not be considered. Additional Licensing is permissible.
Confirmation must be obtained as to whether there is a need for a Mandatory HMO licence or if the Local Authority where the property is situated has additional Licensing or planning requirements.
Property Type and Location Purchase or Remortgage of Houses and Flats in England and Wales (Subject to certain conditions, other property restrictions may apply)
Property Requirements SBI will only accept applications from properties that are existing HMO's or are in a position to be suitably converted for the purpose of letting to multiple tenants within 1 month of disbursement of funds

 

Your Buy-To-Let Property may be repossessed and/or a receiver of rent appointed if you do not keep up payments on your mortgage

 

You must be over 21 to apply for a HMO mortgage.

To know more please visit your nearest branch

Call us on 0800 532 532.

Call centre opening hours are:
Monday, Tuesday, Wednesday, and Friday - 9am to 6pm
Thursday - 9am to 5pm effective from 02 March 2017
Saturday - 9am to 3pm
Sunday - Closed

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