HMO and MUFB Mortgages

Looking to finance a high-yield investment property? HMO and MUFB mortgages are designed for landlords and investors seeking to maximise rental income from multi-occupant properties.

Whether you’re purchasing your first investment, or expanding your portfolio, we help you secure the right finance for your strategy.

What Is an HMO Mortgage?

HMO stands for House in Multiple Occupation. This refers to a property rented out by three or more unrelated tenants who share facilities such as a kitchen or bathroom.

An HMO mortgage is a specialist buy-to-let mortgage tailored to this property type. These mortgages are often available to both first-time landlords and experienced investors, though lender criteria can vary.

What Is an MUFB Mortgage?

MUFB stands for Multi-Unit Freehold Block. This is a single freehold property that contains multiple, separate, self-contained units, for example, a block of flats under one freehold title.

MUFB mortgages are designed for landlords purchasing or refinancing these types of properties, which are often let on individual tenancy agreements.

What Types of Properties Can Be Financed?

You can typically use HMO or MUFB mortgages for:

Shared houses with three or more tenants (HMO)
 

Student lets with individual tenancy agreements
 

Blocks of two or more self-contained flats (MUFB)
 

Converted buildings with separate residential units
 

Larger portfolio properties generating multiple income streams
 

Licensing and planning requirements can apply depending on the number of tenants and property layout, we’ll help you understand what’s needed.

What’s the Difference Between a Standard Buy-to-Let and an HMO or MUFB Mortgage?

HMO and MUFB mortgages differ from standard buy-to-let mortgages in several ways:

Specialist underwriting and lender criteria
 

Higher potential rental yields
 

May require experience as a landlord
 

Licensing or planning permissions may be necessary
 

Valuations are often based on rental income rather than bricks and mortar value
 

These mortgages are often manually assessed by underwriters, which is where our experience helps smooth the process.

Can I Get an HMO or MUFB Mortgage as a Limited Company?

Yes, many lenders offer HMO and MUFB mortgages to limited companies (SPVs), as well as to individual landlords. This can be a tax-efficient route for some investors, and we can help you explore both personal and company options depending on your long-term goals and once you have discussed your options with your accountant.

How Much Can I Borrow?

Loan amounts are generally based on expected rental income, loan to value (LTV), and your overall affordability. 

In many cases:

Up to 75% loan to value is available
 

Some lenders offer higher LTVs on smaller HMOs
 

The number of lettable rooms or units can affect borrowing limits
 

Lenders may assess experience and portfolio size for larger loans
 

We work with lenders who offer both mainstream and bespoke HMO and MUFB solutions, including those open to complex or first-time cases.

Ready to Finance an HMO or Multi-Unit Property?

At SND Mortgages, we help investors navigate the specialist mortgage market with confidence. Whether you're refinancing a portfolio or funding your first HMO, we’ll guide you through every step!