HMO Remortgage: 6 Steps to Better Rates

HMO remortgages can help landlords secure lower rates, release equity, or improve terms on their multi-let properties. With HMO mortgage rates ranging from 4.5% to 7.5%, understanding how to prepare and position yourself is key to accessing the best deals. Here’s a quick summary of the six steps to achieve better rates:

Improve Property Valuation: Boost your property’s value by adding lettable rooms, en-suites, or upgrading communal spaces. A higher valuation reduces your loan-to-value (LTV) ratio, unlocking better rates.
Increase Rental Income: Keep all rooms occupied, set competitive rents, and maintain tenant satisfaction to ensure steady income – key for lender approval.
Get Financial Documents Ready: Organise your HMO licence, tenancy agreements, tax returns, and bank statements to streamline the application process.
Check and Fix Your Credit Score: A higher credit score can significantly lower your interest rate. Address errors, pay bills on time, and manage credit utilisation.
Compare Lender Offers: Look beyond interest rates – consider fees, early repayment charges, and total costs. Use comparison tools or work with a broker for access to niche lenders.
Seek Specialist Advice: HMO-focused brokers can navigate complex criteria, access exclusive deals, and handle the application process efficiently.

How to Calculate the Commercial Valuation of a HMO with Ellie Broadhurst

Step 1: Improve Your Property Valuation

The valuation of your property plays a major role in determining your loan-to-value (LTV) ratio, which directly influences the remortgage rates you can access. A higher valuation lowers your LTV ratio, making you appear less risky to lenders and opening the door to better interest rates.

Here’s an example: For a £300,000 property with a typical two-year fixed-rate mortgage, a 90% LTV might come with an interest rate of 5.38%, while a 60% LTV could drop that rate to 4.41%. That difference can translate into significant savings over time. The factors affecting your property’s valuation are key to securing these benefits.

What Affects Your Property's Value

Valuation methods for HMOs (Houses in Multiple Occupation) differ from those for standard residential properties. Lenders use one of two approaches depending on the size and features of your HMO.

Smaller HMOs (typically 3-4 bedrooms) are assessed using a bricks-and-mortar valuation, which compares your property to similar ones recently sold in the area. Larger HMOs (5+ bedrooms) usually receive a commercial or yield-based (MV1) valuation, which is based on rental income potential. This method often results in a higher valuation, increasing your borrowing power.

"HMO valuations provide a more accurate assessment of your property's value based on its predicted rental income, often resulting in a higher overall valuation. This is good news for you, as higher valuations typically lead to higher borrowing potential and more favourable interest rates." – Andrew Simmonds, Managing Director, Simmonds Mortgage Services

Several factors influence your property’s valuation:

Property configuration: The number of lettable rooms, the quality of the layout, floor space, and features like en-suite bathrooms all contribute. More rooms and well-designed communal areas generally result in higher valuations.
Regulatory compliance: Meeting HMO licensing requirements, adhering to fire safety regulations, and ensuring minimum room sizes are essential. Non-compliance can lower valuations or even prevent mortgage approval.
Location and demand: Proximity to universities, job hubs, transport links, and amenities boosts value by increasing rental demand.
Condition and presentation: Properties that are modern, well-maintained, and recently refurbished tend to command higher valuations.
Rental income consistency: For commercial valuations, steady rental income, high occupancy rates, and tenant stability all strengthen your property’s assessed value.

How to Increase Your Property Value

Making targeted improvements to your property can significantly boost its valuation, creating equity and improving your LTV ratio.

Optimising space is one of the most effective strategies. Adding bedrooms through loft conversions (costing £21,000-£44,000 on average in the UK) or basement conversions (around £2,800 per square metre) can increase both rental income and property value. Single-storey rear extensions are often allowed under permitted development rights, providing a cost-effective way to add usable space. Converting garages into communal areas is another smart option. Ensure all bedrooms exceed the minimum size requirement of 6.51 square metres – ideally aiming for 8 square metres – to attract tenants.

Adding en-suites can greatly enhance tenant appeal and justify higher rents. This is often one of the most impactful upgrades for an HMO.

"Every pound you can negotiate off the asking price is profit in your pocket, so make sure you negotiate well and avoid emotional buying – this is crucial for your return on investment (ROI)!" – Ellie Broadhurst, Specialist Mortgage Broker, Baya Financial in partnership with The HMO Roadmap

Upgrading kitchens and bathrooms with durable finishes, modern appliances, and quality flooring not only attracts higher-paying tenants but also reduces long-term maintenance costs. Professional interior design can set your property apart from the competition.

Compliance improvements are essential for maintaining and enhancing your property’s value. Meeting all HMO licensing requirements, fire safety standards, and local authority regulations is non-negotiable. Failure to comply can result in legal issues and reduced valuations.

Enhancing communal spaces is another way to improve valuation. Comfortable seating for at least two-thirds of tenants, adequate kitchen facilities, and designated dining areas contribute to tenant satisfaction and higher rental demand.

Adding amenities can make your property more attractive. Features like off-street parking (costing £3,000-£15,000+ depending on the area), high-speed internet, and bills-inclusive options appeal to modern tenants.

To maximise your remortgage opportunities, keep detailed records of all upgrades, rental payments, and compliance documents. Surveyors and lenders value this transparency, and it can lead to higher property assessments, better rates, and increased borrowing power.

Step 2: Increase Rental Income and Fix Tenancy Issues

Boosting your rental income is a key step in securing competitive remortgage rates for your HMO. Most lenders expect your rental income to cover 125% to 145% of the mortgage interest, depending on your tax bracket. Meeting this requirement means proving a steady and reliable income stream.

In England and Wales, the HMO market generates an impressive £6.3 billion annually, with the average HMO property pulling in £29,715 per year. However, many landlords miss out on their full earning potential, which can limit their remortgage options.

"HMOs are a significant force on the national rental market, generating a combined rental total of well over £6billion every year. But while this sounds like a strong number, HMO landlords are actually leaving a huge amount of money on the table."
– Vann Vogstad, COHO

Keep All Rooms Occupied

Keeping your HMO fully occupied is the backbone of consistent rental income. While vacancies in one room don’t halt payments from other tenants, maintaining high occupancy requires strategic pricing and efficient management.

To attract tenants quickly, set rents that are competitive yet realistic. Research other HMOs in your area, considering factors like location, property condition, and amenities. Properties near universities, hospitals, or major employers often command higher rents due to steady demand.

Screening tenants carefully can save you from future headaches. Conduct background checks, including credit history, employment verification, and landlord references. With 92% of private sector tenants preferring to stay in their properties long-term, selecting the right tenants reduces turnover and minimises costly void periods.

"It's tempting to rush into filling a vacant room, but the wrong tenant can cause more problems than an empty one."
– Holly Hunt, former HMO property manager turned HMO sales specialist

Marketing is another crucial tool for keeping rooms occupied. Use high-quality photos that showcase both individual rooms and communal spaces. Write detailed descriptions that highlight perks like en-suite bathrooms or fast internet. Platforms that cater to trusted listings, along with virtual tours, can help you reach potential tenants who can’t visit in person immediately.

Once tenants are in place, retention becomes your next priority. Quick responses to maintenance requests, clean and well-maintained communal areas, and regular communication can make a big difference. Tenants are often willing to pay up to 10% more for a better living experience, which includes strong landlord communication and quality finishes.

Offering incentives like discounted rent for longer leases, referral bonuses, or including utilities in the rent can also encourage tenants to stay longer. These strategies reduce turnover and help maintain a steady income stream – something lenders will want to see.

Prove Your Income is Steady

Consistent occupancy is just the start. To strengthen your remortgage application, you’ll need to back up your income with solid documentation. Lenders want to see evidence of reliable income that can weather challenges like vacancies or rising interest rates.

Secure longer-term lease agreements – typically 6 to 12 months – and keep detailed records of rent payments and expenses. Short-term rental income is often excluded unless you can show a pattern of consistency over time.

Lenders will likely ask for recent tax returns, bank statements showing rent payments, and detailed records of occupancy. If your income fluctuates, they may average it over the past two years, making thorough record-keeping essential.

Keep accurate records of all financial activity related to your property. This includes rent payments, maintenance costs, and occupancy rates. HMRC requires landlords to retain these records for at least five years after the January 31st tax return deadline. Property management software can simplify this process, helping you track tenant details, rent payments, and maintenance schedules.

If your property is new or has had recent vacancies, provide lease agreements, rent receipts, and explanations for any gaps. A property management agreement can also support your case, especially if you’re new to HMO investing.

Professional input can further validate your records. An accountant’s reference or certificate adds credibility. Interestingly, many lenders now accept borrowers with no personal income if their rental income is strong enough. Over a quarter of new buy-to-let mortgage deals now cater to such borrowers – a figure that has doubled in recent years.

The goal is to demonstrate that your HMO generates reliable income, capable of covering mortgage payments comfortably, even during challenging times.

Step 3: Get Your Financial Documents Ready

Before applying for an HMO remortgage, take the time to organise your financial documents. This not only speeds up the process but also shows lenders that you’re financially prepared and professional in your approach. Lenders rely on these documents to evaluate your financial stability, spending patterns, and income streams, while also meeting regulatory requirements like anti-money laundering checks.

"For a buy-to-let mortgage, lenders will want to see how effective your existing rental business has been, and how well you've managed the property."
– Sage Advice UK

Documents You Need

Once you’ve shown consistent rental income, the next step is to ensure your financial paperwork is in order. Applying for an HMO remortgage involves more detailed documentation than a standard residential mortgage.

HMO-specific documents:

A copy of your HMO licence (if applicable)
Copies of all Assured Shorthold Tenancy agreements (ASTs)
Information about any other properties you own

Proof of income:

Recent payslips (last three), three years of tax returns, or SA302s and accountant certificates for the self-employed, along with a P60 or HMRC annual tax summary
Self-employed applicants should include HMRC tax calculations, financial statements, or an accountant’s certificate
Evidence of additional income sources, such as benefits, pensions, or maintenance payments, supported by official letters or bank statements

Bank statements: Provide three to six months’ worth for all accounts used for income, deposits, or savings.

Identity and address verification: Include a valid photo ID (passport or UK driving licence) and proof of address, such as a recent utility or council tax bill (dated within the last three months). If relevant, include residency or nationality documents like residence cards or Home Office letters.

Financial obligations: Submit statements showing savings, any gift letters for funds, and details of other loans or liabilities. Also, include evidence of regular outgoings like subscriptions, rental agreements for other properties, and child maintenance payments.

How to Keep Accurate Records

Accurate record-keeping is essential for a smooth application process. It not only verifies the details in your application but also highlights the professionalism of your rental business. With the introduction of Making Tax Digital (MTD) for landlords earning over £50,000 starting in April 2026, digital record-keeping is becoming increasingly important.

"Anything that you can do to make sure that your record-keeping is up to date is always going to be a bonus."
– James Wood, Policy Manager, National Residential Landlords Association (NRLA)

To maintain well-organised records, consider digitising your documents using accounting software. Set up a dedicated HMO bank account and review monthly transactions to avoid errors. Cloud-based systems can be a great way to secure automatic backups of your financial data.

Make it a habit to update your records monthly. Dedicate time to log rental income, track expenses, review bank statements, and file receipts. This routine helps avoid paperwork buildup and ensures accuracy.

Before submitting bank statements, carefully check for any anomalies, irregular spending patterns, or instances of overdrafts and returned payments that could raise concerns with lenders. Avoid taking on new credit or making large, one-off purchases in the months leading up to your application, as these can signal instability.

When submitting documents, ensure they are clear PDFs (or originals for IDs) that display your name, account details, and bank logo.

"Accurate record-keeping is vital in making sure your tax return isn't a cause of stress for you – but what information do you need to keep? And what's the best way to look after it? From dealing with tenants to managing your tax return, if there's one message I want to get across, it's this: record everything, keep it tidy, do it digitally and please, please make backups."
– UK Landlord Tax

Maintain detailed records of everything, including rent books, receipts, invoices, tenancy agreements, and your HMO licence. Track all allowable expenses such as maintenance, utility bills, insurance, letting agent fees, legal costs, and accountant fees. Remember to keep all financial records for at least six years after the end of the tax year they relate to.

If managing this feels overwhelming, consider hiring a property tax specialist or accountant. Their expertise can save time, ensure compliance with tax rules, and add credibility to your application.

Lastly, be upfront with your lender or broker about all financial details – good and bad. Transparency builds trust and prevents delays, as any hidden issues are likely to surface during the underwriting process.

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Step 4: Check and Fix Your Credit Score

Keeping accurate records is essential for your HMO remortgage, but your credit score plays an equally important role. A strong credit profile can open the door to better rates, connecting your financial preparation to securing more favourable remortgage terms.

How Credit Scores Impact Your Rates

Your credit score has a direct influence on the interest rate you’ll pay for your HMO remortgage. As of April 2025, typical high street rates range from 4% to 6% for those with good credit, while those with poor credit may face rates between 7% and 9%. For landlords with moderate credit issues – such as no defaults or County Court Judgements (CCJs) in the past two years – rates generally start at 6.09% and can go up to 7.54%.

"Lenders charge higher rates to mitigate risk when credit is impaired." – Commercial Trust

If your credit score falls into the "bad" category, which in the UK means below 561 with Experian or below 566 with TransUnion, you might find yourself excluded from mainstream lenders and needing to approach specialist lenders instead. Before starting the remortgage process, it’s vital to understand your standing with all three main credit reference agencies.

"Your credit score will have an impact on your mortgage interest rate, with significantly better rates available for those with strong credit histories." – Sam Hodgson, Mortgage Expert, Clifton Private Finance

Improving your credit score not only helps you secure better rates but also strengthens your overall financial profile as an investor.

Steps to Improve Your Credit Score

Boosting your credit score takes patience and consistent effort, but the long-term savings can make it well worth the time. Nearly one-third of people who reviewed their credit reports in the past five years discovered errors, so a thorough review of your credit reports is a crucial first step.

Start by checking your reports from Experian, Equifax, and TransUnion for mistakes like incorrect personal details or duplicate accounts. If you spot any errors, contact the data provider – such as your bank or lender – to request corrections. If the issue isn’t resolved, you can escalate it by filing a formal dispute with the credit reference agency. For situations where the information is accurate but needs context (such as a missed payment due to illness), you can add a Notice of Correction – a 200-word explanation that lenders will see.

Other key steps include:

Timely Payments: Always pay your bills on time to build a positive payment history.
Manage Credit Utilisation: Keep your credit use below 30% of your total limit. For example, if your credit limit is £10,000, aim to keep your balance under £3,000. Making smaller payments throughout the month can also help.

"The lower [your credit utilisation] the better – it is a reflection of how reliant you are on that credit." – James Jones, Head of Consumer Affairs, Experian

Register on the Electoral Roll: This helps lenders verify your identity and address.
Avoid New Credit Applications: In the months leading up to your remortgage, avoid applying for new credit. Hard searches can temporarily lower your score and may signal financial stress to lenders. Use soft searches instead to check eligibility.

You can also explore tools to enhance your credit score. For instance, Experian Boost includes council tax payments and subscriptions in your credit score calculation, while rent reporting services like CreditLadder or Canopy can reflect consistent rent payments.

While positive actions can improve your score over time, keep in mind that negative marks – like defaults or bankruptcies – can remain on your report for six to seven years. However, their impact lessens as they age. Specialist lenders may consider applications 12–24 months after bankruptcy if your credit behaviour has improved, but mainstream lenders often require at least six years.

"Having a great credit score and strong prospects and evaluations for every deal can make the bank feel confident and comfortable lending to you. When this happens, they're more likely to lend to you for cheaper and longer." – Andy Graham, Founder and Lead Trainer, The HMO Roadmap

Improving your credit score is one of the smartest financial moves you can make. For example, on a £300,000 mortgage, the difference between a 5% and an 8% interest rate adds up to £9,000 per year. Taking the time to improve your score could significantly enhance your HMO portfolio’s profitability.

With your credit score in good shape, you’ll be ready to explore and compare lender offers in the next step.

Step 5: Compare Different Lender Offers

Once you've strengthened your credit profile and organised your finances, it's time to dive into comparing lender offers to find the best remortgage deal. This step is crucial because HMO mortgages are a specialised area with fewer lenders and stricter requirements than standard buy-to-let mortgages. Taking the time to carefully evaluate your options can save you thousands of pounds over the course of your mortgage.

What to Compare Between Products

When reviewing HMO remortgage offers, don't just focus on the interest rate. The total cost of the mortgage includes various fees that can significantly impact the overall expense.

Interest rates are, of course, a key factor. HMO mortgage rates tend to be 1%-1.5% higher than standard products. As of September 2025, rates for HMO mortgages range from 1.79% to 10.54%. The rate you qualify for will largely depend on your loan-to-value (LTV) ratio. Typically, the best rates are available at 60% LTV or below, with most HMO mortgages requiring LTV ratios between 55% and 85%.

Fees also play a big role in the overall cost. Arrangement fees for HMO mortgages can range from £0 to over £4,000, with some lenders calculating them as a percentage of the loan amount – usually between 1% and 7%. For instance, some lenders may have no arrangement fees, while others charge percentage-based ones. It's important to calculate the total cost, including fees, over the term to understand what you're really paying.

Early repayment charges are another factor to consider, especially if you think you might remortgage again or sell before the fixed term ends. These charges typically range from 2% to 6% of the balance repaid. Additionally, valuation fees – often higher for HMOs and non-refundable – should be accounted for. Some lenders do offer free valuations as part of their package. Legal fees can also vary, but some lenders cover these costs if you use their recommended solicitor.

"A handy tip is to look at the overall cost rather than just the lowest rate. Some low initial rates have high revert-to rates meaning there is a greater chance you will need to refinance after the 'tie-in' period ends." – ABC Finance Ltd

The Annual Percentage Rate of Charge (APRC) can help standardise comparisons by factoring in both the interest rate and associated costs over the lifetime of the mortgage. Additionally, some lenders offer incentives that can add value. For example, Fleet Mortgages provided £1,000 cashback on their HMO products in May 2025, and Keystone introduced cashback offers ranging from £250 for smaller loans to £3,500 for larger ones in March 2025.

"When mortgage rates are falling, it can be tempting to wait for even lower rates before making your move. However, things can change quickly, and in the blink of an eye, rates may be rising fast. Reserve a suitable deal quickly to secure favourable rates. The good thing is that if a better option emerges before you must finally commit to that original deal, you may be able to opt for that one instead. Just check if fees are payable for reserving that initial deal that you may not get back." – Tim Leonard, Lead Writer and Mortgages Expert, NerdWallet

Use Comparison Tools

Once you've reviewed the details of various products, technology can make the comparison process much easier. Specialist tools can simplify your search for the right HMO remortgage. For example, the HMO Mortgage Broker's remortgage calculator lets you input details like your current mortgage balance, remaining term, and interest rates to estimate your savings after fees. Similarly, Commercial Trust's HMO mortgage calculator provides insights into interest rates, monthly payments, and product fees based on your property value, loan amount, and desired terms. While these tools don't guarantee rates, they offer a helpful starting point.

Working with a specialist mortgage broker can also be incredibly beneficial. Many HMO lenders operate exclusively through brokers, meaning their products aren't available directly to borrowers. A broker can compare offers from over 70 lenders, including niche providers not found on the high street.

The mortgage market is constantly shifting – not just when the Bank of England adjusts base rates. For example, Fleet Mortgages reduced their HMO rates by 10–15 basis points in September 2025, and Metro Bank introduced new HMO products starting at 3.69% in July 2025.

Start comparing deals at least six months before your current mortgage deal expires. This gives you enough time to secure a favourable rate while keeping your options open. Also, check with your existing lender – they might offer competitive product transfer rates with simpler processes and lower fees compared to switching lenders.

Taking the time to compare thoroughly will ensure you're well-informed for your next remortgage decision.

Step 6: Get Help from HMO Specialists

Once you've compared lender offers, the next step is to enlist the help of HMO mortgage specialists to finalise your remortgage deal. The HMO market operates differently from standard buy-to-let mortgages, and having expert guidance can make all the difference between securing a deal or facing rejection.

Why Specialist Advice Matters

HMO mortgages come with unique challenges, such as licensing requirements, tenant management, and valuation complexities. Many specialist lenders only work through brokers, making expert advice essential.

For example, HMO properties tend to offer higher rental yields – averaging 7.5% in the UK in 2021 compared to 3.63% for standard buy-to-let properties – but they also require larger deposits, typically between 25% and 30%, due to their higher-risk profile [94,97]. As UK Moneyman explains:

"The HMO mortgage market is complicated and can be a minefield without an experienced buy-to-let mortgage broker by your side."

Specialist brokers understand the intricacies of affordability calculations, valuation methods, and tenant profile restrictions. They can help navigate complex lending criteria and valuation approaches. Some lenders even provide a decision in principle within two hours when applications are submitted through experienced brokers.

By working with specialists, you can save time and avoid the pitfalls of rejected applications, which can negatively impact your credit score. While HMO remortgages typically take 4–6 weeks, delays are common without proper guidance. As UK Moneyman highlights:

"This is where the help and assistance of an experienced HMO mortgage broker will prove invaluable and could save you both time and money."

Specialist brokers also offer tailored remortgage solutions to meet your specific needs.

How The HMO Mortgage Broker Can Assist

The HMO Mortgage Broker

The HMO Mortgage Broker provides expert solutions tailored to HMO investments. With over 500 reviews and an impressive 4.9/5 rating, their team dedicates 97% of its efforts to HMOs. This focus ensures they are well-versed in the unique challenges of HMO properties, such as licensing, tenant turnover, and management.

They prioritise rental income potential over personal income, often securing more favourable terms for landlords. Their access to a wide network of HMO lenders – including exclusive deals not available directly – means they can find competitive rates for you.

For landlords with complex portfolios, they offer portfolio-level underwriting, which evaluates the overall performance of your properties. This approach can lead to lower rates, often by 0.25–0.5%, compared to standard HMO mortgage products. However, due to the detailed nature of these assessments, applications may take 8–12 weeks.

Their proven track record includes securing competitive remortgage terms and releasing equity efficiently. Beyond rate comparisons, they handle complex deals, portfolio restructures, and the legal and financial requirements involved. With dedicated account management, they guide you through every step – from the initial consultation to lender selection and application completion – always prioritising your financial goals.

Conclusion: Get Better HMO Remortgage Rates

Getting better HMO remortgage rates isn’t about luck – it’s about being prepared and strategic. The current market offers a variety of competitive rates, but how much you save depends on how well you prepare your application. A well-executed plan could save you thousands every year.

Every step in the process strengthens your application by addressing what lenders care about most. For instance, improving your property’s valuation reduces your loan-to-value ratio, which can make you eligible for better rates. This is particularly relevant since lenders often require deposits of 20–25% for HMOs. Boosting rental income and maintaining full occupancy also demonstrates that your investment is reliable. Each of these steps plays a key role in making your application stand out.

Main Points to Keep in Mind

The six steps discussed earlier are all about meeting lender expectations. Proper documentation not only speeds up the process but also lowers the risk of rejection. Meanwhile, a strong credit score can directly impact the rates you’re offered. In today’s market, comparing lender options is more important than ever, as the number of HMO mortgage products has reached its highest level in over a decade. Additionally, seeking advice from specialists can give you access to exclusive deals and help you navigate the often-complex world of HMO financing.

By taking a systematic approach, you’ll be addressing all the key factors that lenders evaluate, giving yourself the best chance of securing favourable rates.

What Steps Should Landlords Take Next?

To make the most of this information, start by evaluating your current position. Review your property’s value and look for ways to increase it, ensure all rooms are occupied with tenants, and document your rental income thoroughly. Gather all the necessary financial paperwork and check your credit score to see where you stand.

With rental prices rising by over 7% year-on-year by the end of 2024, the HMO market is thriving. However, competition for the best rates is intense, so it’s crucial to avoid rushed decisions that could cost you in the long run.

If you’re unsure where to begin or need tailored advice, consider working with The HMO Mortgage Broker. They can provide expert guidance and access to exclusive deals designed specifically for HMO investments.

Don’t wait – start implementing these steps today to maximise your returns and secure the best rates for your HMO remortgage.

FAQs

How can I improve my HMO property to increase its value and get better remortgage rates?

To enhance the value of your HMO property and secure more favourable remortgage rates in the UK, focus on increasing rental income and keeping the property in excellent condition. Start by refurbishing the property, ensuring all rooms comply with safety and licensing standards, and, where feasible, adding more lettable rooms.

Upgrades can make a big difference too. Think about improving amenities, boosting energy efficiency with better insulation or energy-saving appliances, and staying compliant with local planning and licensing regulations. Since HMO valuations are often tied to rental yield, taking these steps can make your property more appealing to lenders and help you access better financing options.

How does the loan-to-value (LTV) ratio affect the interest rates for HMO remortgages?

The loan-to-value (LTV) ratio is a crucial factor that lenders consider when setting interest rates for HMO remortgages. Generally, the lower your LTV ratio – say, around 60% – the better the interest rates you’re likely to get. This is because a lower LTV means less risk for the lender. On the flip side, higher LTV ratios, such as 80% or more, are often paired with higher interest rates due to the increased risk they pose.

Lenders typically provide LTV options ranging from 55% to 85%. Choosing a lower LTV not only reduces borrowing costs but also improves your chances of securing a more attractive deal. Taking the time to assess your property’s valuation and overall financial situation can help you adjust your LTV and negotiate better terms with your lender.

What financial documents do I need for an HMO remortgage, and how can I keep them well-organised?

When you're applying for an HMO remortgage, you'll usually need to provide a few essential documents. These include proof of income (like payslips or tax returns), your HMO licence, information about your current mortgage, and copies of the Assured Shorthold Tenancy (AST) agreements for your tenants. If you own other properties, you'll also need to gather the relevant paperwork for those.

To keep things simple and stress-free, consider setting up a dedicated folder – either physical or digital – for all these important documents. Make sure everything is up to date, clearly labelled, and easy to find. Not only will this make the application process smoother, but it can also leave a good impression on potential lenders.