HMO mortgage calculator

1. Enter the loan amount you want to model (not automatically the purchase price).
2. Enter a term in years.
3. Enter an interest rate you sourced from a broker or lender illustration — live product rates are not shown as facts on this page.
4. Choose repayment vs interest-only only ; know which you selected.
5. Read the monthly figure as illustrative; run sensitivities.

• Inputs are yours; the calculator does not know your credit file, licence status, or lender criteria.
• Rates are not live-fed from banks — treat any typed rate as a user-supplied illustration, not a live market quote.
• Fees, ERCs, product fees, and insurance are outside the monthly figure unless you add them manually.
• HMO eligibility (experience, stress tests, maximum LTV) is not modelled.
• Tax relief on interest is not modelled (tax overview., not advice).

• Will not recommend a product or lender.
• Will not tell you whether you can obtain an HMO mortgage.
• Ignores stress-test multiple used by many buy-to-let underwriters.
• Ignores voids, licence risk and refurb costs.
• Not a Red Book valuation or panel mortgage valuation.

For a capital-and-interest illustration, monthly payment depends on principal, rate and term. Label every input. Compare a second rate 1 percentage point higher to see payment shock. Pair cash outflow with rent schedules from room rents and yield tools yield calculator.

Lenders often ask about landlord experience, existing portfolios, HMO licensing, and property type (including larger / sui generis stock — 7+ occupant planning). Criteria change. Speak to a broker authorised by the FCA for regulated advice. Insurance for HMO use is a separate product conversation (buildings cover · insurance comparison).

Use the calculator to organise questions for a broker, not to bind an offer. Remortgage guide: HMO remortgage. Selling with a charge: Selling an HMO with a mortgage. Purchase path: How to buy an HMO. Licensing still required where due (HMO licensing guide). Valuations: get a valuation.

Interest-only monthly figures look lower and are easy to misuse in marketing packs. If you model interest-only, label it clearly and remember principal remains due at the end. Repayment illustrations amortise principal — still not an offer.

Many buy-to-let underwriters assess affordability at a stressed rate above the pay rate. Re-run the calculator at a higher rate by hand and compare the result to net rents after voids (HMO yield calculator · HMO yield explained).

Loan-to-value needs a valuation basis (HMO mortgage valuation · HMO valuations). Typing an optimistic price into a repayment tool does not raise the lender’s LTV cap.

Arrangement fees, valuation fees, broker fees, ERCs on the old product, and higher HMO insurance belong in the cash model even when they are outside the monthly repayment output. Selling with a charge: Selling an HMO with a mortgage.

• advisers authorised by the FCA for regulated mortgage advice
• Lender illustrations for real product figures
• GOV.UK — HMO licence for licensing backdrop